In an earlier posting the course readings for the topics “Urban Rent” and “Broader Aspects of Rent” were transcribed for the team-taught course at Harvard of Taussig and Schumpeter, assisted by Alan Sweezy, on theories of value and distribution (first term, 1934-35). From the final examination questions below, we can see that the reading lists from the Harvard Archives collection of course outlines is indeed incomplete for this course. It is entirely likely that other assignments were simply written on the board as needed.
When Taussig taught the course himself in 1932-33 the course description notes “Course 7b undertakes a critical examination of current theories of wages, interest, rent, and profits, particular attention being given to Marshall’s treatment. The course is carried on mainly by discussion. It is meant primarily, though not solely, for candidates for the degree with honors. Students who have attained a grade of A or B in Economics A are admitted without further inquiry. Others must secure the consent of the instructor.”
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Final Examination
Theories of Value and Distribution
Professors Taussig and Schumpeter, Dr. A. Sweezy
1934-35
HARVARD UNIVERSITY
ECONOMICS 7b1
- Are the earnings (rental) of an urban site used for retail trade a cause or an effect of prices of goods there sold? Are the earnings of a skilled craftsman cause or effect of the prices of the goods made (or services rendered) by him? Are the earnings of a business man?
- Does Marshall’s distinction between “situation value” and “site value” bear upon the problems of monopolistic competition? If so, why and how? If not, why not?
- “In estimating the utility of an entire supply of apples, we must distinguish between the total utility and the marginal utility of the stock. The total utility of a stock is obtained by adding the utility of each additional apple to that of its predecessor. It will accordingly grow until the point of satiety has been reached. Ten apples possess more total utility than five. The marginal utility of the stock, however, is always equal to the marginal utility of the final unit multiplied by the number of units. The marginal utility of two apples will be twice that of the second, of four apples four times that of the fourth.”
Do you agree? - “Real costs,” “money costs,” “expenses of production,” “supply price.” The same? If different, wherein?
- Are “profits,” as defined by
(1) Marshall
(2) Clark
(3) Schumpeter
to be reckoned among the expenses of production?
- Explain briefly two of the following:
(1) Difference between selling and production costs.
(2) Determination of equilibrium of the individual firm under conditions of monopoly and competition.
(3) Effect of product differentiation on price, costs, output of the individual firm, and profits.
Final. 1935.
Source: Harvard University Archives. Harvard University. Final Examinations, 1853-2001 (HUC 7000.28, 77 of 284). Examination Papers, June, 1935.
Image Source: Harvard Class Albums: Taussig (1923), Schumpeter (1939), A. Sweezy (1929).