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Economics Programs Exam Questions Johns Hopkins Undergraduate

Johns Hopkins. Exams for Undergraduate Political Economy Courses, 1923-1924

 

Several undergraduate course exams for the 1922-23 academic year at Johns Hopkins University in Political Economy have been posted earlier. The exams for 1919-20 have also been transcribed. A more complete (though still incomplete) sample is available the the university archives for the following year and which have been transcribed for this post.

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Johns Hopkins Faculty
for the Undergraduate Courses in Political Economy
1923-1924

Barnett, George Ernest, Ph.D., Professor of Statistics.

A.B., Randolph-Macon College, 1891; Fellow, John Hopkins University, 1899-1900, and Ph.D., 1901.

Weyforth, William Oswald, Ph.D., Associate Professor of Political Economy.

A.B., Johns Hopkins University, 1912, and Ph.D., 1915; Instructor, Western Reserve University, 1915-17.

Mitchell, Broadus, Ph.D., Associate in Political Economy.

A.B., University of South Carolina, 1913; Fellow, Johns Hopkins University, 1916-17, and Ph.D., 1918.

Jacobs, Theo, A.B., Associate in Social Economics.

A.B., Goucher College, 1901; Federated Charities of Baltimore (District Assistant, 1905-07, District Secretary, 1907-10, Assistant General Secretary, 1910-17, Acting General Secretary, 1917-19).

Newlove, George Hills, Ph.D., Associate in Accounting, School of Business Economics.

Ph.B., Hamline University, 1914; A.M., University of Minnesota, 1915; Ph.D., University of Illinois, 1918; C.P.A. (Ill.), 1918; C.P.A. (S.C.), 1919.

Gillies, Robert Carlyle, A.B., Instructor in Political Economy.

A.B., Princeton University, 1920.

Source: The Johns Hopkins University Circular, University Register 1922-1923, No. 342, January 1923. Announcements for 1923-1924.

Biographical information for George Hills Newlove found in John J. Kahle American Accountants and their Contributions to Accounting Thought, 1900-1930. Routledge Library Editions: Accounting, 2014.

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UNDERGRADUATE COURSES
1923-24

  1. Elements of Economics.
    Particular attention is given to the theory of distribution and its application to leading economic problems

Three hours weekly through the year. Associate Professor WEYFORTH, Dr. MITCHELL and Mr. GILLIES.

  1. Statistical Methods.

After a preliminary study of the value and place of statistics as an instrument of investigation, attention is directed to the chief methods used in statistical inquiry.

Three hours weekly, first half-year. Mr. GILLIES.

  1. Money and Banking.

The principles of monetary science are taught with reference to practical conditions in modern systems of currency, banking, and credit.

Three hours weekly, second half-year. Associate Professor WEYFORTH.

  1. American Trade Unionism.

The history, structure and functions of American trade unionism are studied.

Three hours weekly, first half-year. Professor BARNETT.

  1. Labor Problems.

The problems growing out of modern industrial employment will be studied.

Three hours weekly, first half-year. Professor BARNETT.

(Course 5 will not be given in 1923-24.)

  1. Corporation Finance.

The theory and practice of corporation finance are considered , with particular reference to the problems presented in the United States.

Three hours weekly, second half-year. Professor BARNETT.

  1. Investments.

Includes historical and analytical description of the more important forms of investments and theories of valuation and amortization.

Three hours weekly, second half-year. Professor BARNETT.

(Course 7 will not be given in 1923-24.)

  1. Applied Statistics.

The applications of statistics to business and economic problems, such as price levels, cost of living, wage adjustments, business cycles, and business forecasting, are considered.

Three hours weekly, first half-year. Associate Professor WEYFORTH.

  1. Foreign Trade and Exchange.

The economic principles of international commerce, the methods of conducting foreign trade, and the theory and practice of foreign exchange will be studied.

Three hours weekly, first half-year. Associate Professor WEYFORTH.

(Course 9 will not be given in 1923-24.)

  1. Business Organization.

This course is designed not only to show the structure of typical business entities, but their methods of formation and expansion. The common forms of securities are examined. Operation and administration of business units and the processes of marketing are studied in detail.

Three hours weekly, second half-year. Mr. GILLIES.

  1. Accounting.

This course deals with the fundamental principles underlying the recording of business transactions in the accounting books and records, and the preparation of balance sheets and statement of profit and loss for single entrepreneurs, partnerships, and corporations.

Four hours weekly, through the year. Dr. NEWLOVE.

  1. Economic History.

This course is designed to furnish a background for the study of economic principles and special phases of economic activity. It is a particular purpose of the course to show the relationship between economic fact and economic and political theory and practice.

Three hours weekly, through the year. Dr. MITCHELL.

  1. Social Economics.

The history and development of charitable and social agencies are traced. Causes and treatment of cases of dependency and delinquency are discussed.

Two hours weekly, through the year. Miss JACOBS.

Source: The Johns Hopkins University Circular, University Register 1922-1923, No. 342, January 1923. Announcements for 1923-1924, pp. 255-256.

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Examinations for
Undergraduate Political Economy Courses
Johns Hopkins University
1923-1924

POLITICAL ECONOMY I “A”

February 5th, 1924—9-12 A.M.

  1. Compare the manorial system with farming at the present time. Compare the system of industry in towns during the middle ages with the modern industrial system.
  2. What is meant by the “industrial revolution”? What theories in regard to the proper relationship of the state to industry, developed at this time? Explain. Compare these new ideas with the theory and practice preceding. What is the tendency of present theory and practice as regards state interference with industry?
  3. (a) “Labor alone is the producer of wealth; take away labor and not all the capital in the world could produce anything.” Allowing the second clause to be true as a statement of fact, does it prove the proposition contained in the first? Explain.
    (b) “Discovery and invention have doubtless played a very large part in securing our present high industrial efficiency. But they are not the whole thing. The increase of capital has been equally necessary; for, without capital, invention could have accomplished little or nothing.” Defend and illustrate the last sentence.
  4. Explain how market price is the result of the forces of supply and demand. Illustrate by tables and diagrams showing supply and demand. At what point does price tend to be fixed? Why?
  5. Define the following: (a) utility; (b) diminishing utility, (c) marginal utility. Why can we say that the market price of a good corresponds to the marginal utility of that good to the marginal consumer?
  6. In general, what is the relationship between cost of production and market price? What is the relationship between the cost of production of two goods produced under conditions of joint cost and the selling prices of those goods? If the price of cotton seed oil should rise, what would tend to be the effect upon the price of cotton fibre? Why?
  7. What are the functions of money? What is meant when it is said that we have a “gold standard” in the United States? What are the actual kinds of money in use in the United States?
  8. What is credit? What service does it perform in the modern economic system? What is the difference between a promissory note and a bill of exchange? What use does the business man make of a commercial bank?

 

POLITICAL ECONOMY I “A”
[Dr. Weyforth]

Thursday; May 29, 1924—9 a.m.

  1. Explain the economic factors that must be taken into consideration in determining Germany’s capacity to pay reparations. How will Germany obtain funds abroad with which to make such payments?
  2. What policy should be pursued by the business man during a period of cumulating prosperity? What would be the policy of banks during such a period?
  3. Explain the principles determining the rent of land. If the price of wheat is $1.50 per bushel, what rent could be paid for the use of an acre of land that yielded 30 bushels at an average cost in labor and capital of $1.25 per bushel? Would the tendency be for any of these bushels to cost the producer $1.50? Explain.
  4. How do you account for the great differences in the wages of railroad presidents and of unskilled laborers? Suggest a general program for our society that would tend to bring about a much greater degree of equality in the returns for labor service than now prevails.
  5. Explain why interest can be paid and why it must be paid. What is the effect upon the rate of interest of (a) increased saving, (b) inventions making possible the use of more elaborate machinery, (c) war? Explain.
  6. What is the nature of the railroad problem in the United States? Describe briefly the history of our governmental policy toward railroads. What possible methods of handling the problem are open to us at the present time?
  7. Distinguish socialism from anarchism and syndicalism. What would you say is the fundamental idea in socialism? What criticisms do the socialists make of our present economic system? Give a critical estimate of socialism.
  8. What would you expect to be the relation between the goods exports and the goods imports of a country during the following periods:
    1. When it is first open to settlement or to industrial enterprise;
    2. When it has become quite well supplied with imported capital goods;
    3. When its citizens begin to make investments in other countries;
    4. When a relatively large amount of such foreign investments have been made.

Explain the reasons for your answer. In which of the above stages is the United States? England? Mexico?

POLITICAL ECONOMY I “B” [Mitchell.]

Tuesday, February 5th, 1924—9-12 A.M.

  1. What are the distinctions between the physical sciences and the social sciences?
  2. Why is our interest turning at this time to production?
  3. Define briefly: consumer’s surplus, capital, wealth, “unearned increment”, diminishing returns.
  4. What is the chief criticism to be made of cost theories of value?
  5. (a) Why is it sometimes to the advantage of an individual landowner to withhold his land from use?
    (b) How does the withholding of land from use affect the incomes of landlords as a class?
    (c) Can a tax on land be shifted from owner to occupier?
  6. What do you understand by Ricardo’s “iron law of wages”?
  7. (a) Why is interest paid? (b) Why did the schoolmen of the Middle Ages object to interest?
  8. What is the justification of a progressive income tax?
  9. State all you know about the personnel of the new labor government in Great Britain.

 

POLITICAL ECONOMY I “B”
Elements of Economics

Thursday, May 29, 1924

  1. Discuss the several sorts of monopoly.
  2. What are the advantages of the corporate form of business enterprise?
  3. (a) What is the justification for a progressive income tax?
    (b) Compare the advantages of financing a war by taxation and by borrowing.
  4. Describe briefly the Federal Reserve System.
  5. What are the economic and social effects of inflation?
  6. Discuss the main doctrines of Karl Marx.
  7. What are the chief benefits and drawbacks of a cooperative system as opposed to a competitive system?
  8. (a) Discuss the origin of trade unionism.
    (b) Distinguish between the purposes and methods of the I.W.W. and the unions affiliated with the A.F. of L.

 

POLITICAL ECONOMY I “C”

February 5th, 1924—9-12 A.M.

  1. What are the strengths and weaknesses of the present economic system? What are its present tendencies? Under what conditions should the state interfere in our economic processes, and how?
  2. Summarize the case for competition as opposed to (a) private monopoly; (b) state ownership. In what type of cases would private monopoly under state regulation offer the best solution?
  3. How is the price of labor affected by changes in the volume of immigration? By shifting of the negro population? What classes of labor would be affected? Relate your answer to the fact that wages rose constantly in the United States from 1897-1921.
  4. (a) Given the following data:
Price (Dollars)
3.00 4.00 5.00
Demand (units) 52 46 30
Supply (units) 24 35 56

Calculate the elasticity of demand at $4.00.
(b) What are the conditions that make for a slow rate of diminishing utility?

  1. Is there any necessary connection between monopoly and “big business”? What is the difference between a partnership and a corporation in (a) legal requirements and liability, (b) structural organization, (c) comparative advantages?
  2. Define non-cumulative-participating-preferred stock; holding company; general-mortgage bond. Give the principal features of the Sherman Act. Name some methods of unfair competition.
  3. Would wheat be a satisfactory money commodity? Would diamonds? Give reasons for your answers. What is meant by the “gold standard”? What has been our experience with bimetallism? Can it work?
  4. What is meant by “fiat” money? Were the greenbacks fiat money? Were the Federal Reserve notes issued during the World War fiat money? Why did prices go up during both wars? Is this necessary? Why?
  5. Describe the Federal Reserve System, its chief functions, changes it produced in our money and banking system, etc. How are checks cleared under the system?
  6. What is the quantity theory of money? What would be the effect upon prices of (a) adopting bimetallism, (b) increased bank reserve requirements, (c) a national fad for gold ornaments, (d) a higher rediscount rate, (e) enforcing seigniorage?
    If the quantity of metallic money has not changed, nor the level of prices, how do you reconcile this fact with a change in the volume of business over the same period?

 

POLITICAL ECONOMY I “C”
[Mr. Gillies]

May 29, 1924—9  A.M.

  1. Whom do you consider the most important factor in modern business, the landlord, the laborer, the capitalist, or the entrepreneur? Give reasons for answer.
    What other elements must be separated from price movements before the business cycle can be recorded? How can you tell when business is near a crisis?
  2. What is the purpose of the finance bill, and how does it operate? Discuss the merits and limitations of the doctrine of purchasing power parity, and tell what effect the maintenance of a high tariff by the United States against England has in the working of the doctrine as between these two countries.
  3. Validate the statement that the only way Germany can pay her indemnity is by an excess of exports over imports.
    Show how the mechanism of foreign exchange and international trade tends to produce like price movements all over the world.
  4. Outline the argument for the utility theory of value as opposed to the cost of production theory of value and show the application of these arguments to the determination of the share of industrial earnings going per unit to land and to capital.
  5. How is rent determined when the same land may be used for a number of different purposes? What has the varying intensivity [sic] of cultivation to do with rent?
    What is the economic justification of labor unions?
  6. Distinguish the attitude of British law and the Clayton Act in regard to labor disputes. What place does the concept of conspiracy play in the treatment by the courts of labor troubles in this country? Do you consider it just for the employer to bear the whole cost of industrial accidents? Is this the effect of our compensation laws?
  7. How large a return must be imputed to capital goods in order that they may truly pay for themselves? Does the fact that the price of consumption goods, when traced back, ultimately resolves into rent, wages and interest mean that there is no such thing in the long run as profits? (Reasons)
    Show roughly how income is distributed among our population. What can be done to improve this distribution.
  8. Is an increasing percentage of the national income spent for governmental activity a sign of increasing extravagance? (Reasons) To what extent should a government borrow and to what extent should it support itself by taxation? What constitutes justice in taxation?
  9. Distinguish direct and indirect taxes. Name some taxes of each kind. What taxes can be shifted? What determines the amount of shifting? What are the objections to a general property tax?

 

Examination in Statistics
(Pol. Econ. II)

January 31, 1924

  1. What are some of the common sources of secondary data? Given the relative advantages and disadvantages of collecting data by (a) personal investigation, (b) questionnaires, (c) enumerators. Give examples where possible in all cases.
    20 minutes.
  2. Give the number and total capacity of box cars, coal cars, and other cars in the Eastern, Southern, and Western Districts of the United States, tabulate so as to show average capacity of these three types and of all cars in each district and in all districts; use letters with subscripts to represent data, e.g. capacity coal cars in the Southern District = Ccs.
    30 minutes.
  3. Sow the various ways in which the above data could be presented diagrammatically, pictorially, or graphically.
    20 minutes.
  4. Given the following data:
Article of Food Consumption, 1901, per family Average Retail Price per Unit
1913 1917 1920
Sirloin steak 70 lbs. $0.25 $0.32 $0.35
Eggs 80 doz. 0.35 0.48 0.70
Milk 350 qts. 0.09 0.11 0.17
Potatoes 15 bu. 1.00 2.60 3.80

Show (do not compute) how an index number for these four commodities would be made up on

      1. Bradstreet’s method,
      2. Dun’s method.
      3. Compute the index number for 1917 and 1920 according to the method of the Bureau of Labor Statistics (base = 1913).
      4. What is the chief objection to an “average of relatives” index number?
        25 minutes.

5.  (A or B).

    1. How is an ogive constructed? Illustrate by sketch and show how the mode and the eighth decile may be determined from it. How is a percentage histogram constructed? What is its purpose?
    2. Prove the general validity of the short-cut method of computing the standard deviation.
      15 minutes.

 

  1. Given the following data:
Operating Revenues of Class I Carries
Eastern District—1920
In Millions of Dollars
1 2 3 4 7 15 24 74 492
1 2 3 4 8 15 26 75 —
1 2 3 5 10 15 30 76 —
1 2 3 5 10 16 35 81 —
1 2 4 5 11 17 39 94 —
1 2 4 5 11 19 45 94 —
2 2 4 6 12 19 51 107 —
2 2 4 6 12 22 65 [?] 200 —
2 3 4 7 14 23 70 314 —
Arithmetic Average $32,268.

Calculate, showing operations, the quartile coefficient of dispersion and skewness (series is theoretically continuous).
Compute, in tabular form, the coefficient of dispersion based on the median (to nearest whole number of millions).
How many places are justified in the above arithmetic average, on basis of data shown? Calculate the coefficient of skewness based on the mode.
30 minutes.

  1. Inflation of money is accompanied, or followed, by higher prices. Price fluctuations are measured roughly by index numbers. To the extent that inflation in one country exceeds that in another, its exchange in terms of the currency of the other country will depreciate. The following exercise is designed to test the tenth [sic, “truth”] of this doctrine.
    Given the following data:
1920 Index Numbers Sterling Cables
New York
Value £ in Dollars
B.L.S.*
(United States)		 Statist+
(England)
January 248 288 $3.68
February 249 306 3.39
March 253 307 3.72
April 265 313 3.93
May 272 305 3.85
June 269 300 3.95
July 262 299 3.86
August 250 298 3.63
September 242 292 3.52
October 225 282 3.47
November 207 263 3.43
December 189 243 3.63
* Bureau of Labor Statistics, Wholesale Prices.
+ The Statist, English journal of finance, Wholesale Prices.

Reduce the B.L.S. indices to relatives of the corresponding statist indices, and correlate these relatives with the price of sterling by Pearson’s method. Does result confirm the above theory? How would you modify the method to correlate the short time changes in the two variables? Compute the standard deviation for one variable in your table.
Explain log. How would you plot a logarithmic historigram of the B.L.S. index numbers?
40 minutes.

 

POLITICAL ECONOMY III

Monday, May 26, 1924—9 a.m.

  1. What is standard money? State the requisites of (a) a gold standard; (b) a bimetallic standard; (c) a paper standard. State the advantages and disadvantages of each.
  2. Explain the functions of a commercial bank, showing what economic services it performs. Distinguish the functions of a commercial bank from those of (a) a savings bank; (b) an investment banker.
  3. Define, illustrate and explain the use of the following types of credit instruments: (a) promissory note; (b) bill of exchange; (c) trade acceptance; (d) bank acceptance.
  4. Explain the connection between the loans and deposits of commercial banks. To what extent ordinarily can an individual bank increase its loans as the result of a cash deposit of $100,000? To what extent can the loans of the banking system as a whole be increased as the result of such an addition to the cash deposits of the system? Explain.
  5. How does the Federal Reserve System provide for elasticity in currency and in credit? What is the need for such elasticity?
  6. What is the need for the control of bank credit? How may this control be effected under the Federal Reserve System?
  7. The Federal Reserve Bank of New York receives $8,000,000 of gold deposits.
    1. If member banks take all their rediscounts in federal reserve notes, how much additional paper can the reserve bank rediscount for its members, assuming that it does not borrow at other reserve banks? Make no allowance for discount charges.
    2. Answer the same question, assuming that member banks leave all their rediscounts on deposit.
    3. Answer the same question, assuming that member banks take 1/5 of their rediscounts in federal reserve notes and leave the remainder on deposit.
    4. Explain the quantity theory of money, showing the effect upon prices, of changes in the quantity of money, and of bank credit.

 

POLITICAL ECONOMY IV

January 31, 1924—9-12 A.M.

  1. Define a trade union and indicate the distinctions between trade unions and other analogous associations such as cooperative societies, societies of physicians, etc.
  2. Classify trade unions according to the character of the employer.
  3. Sketch the historical development, by periods, of American trade unionism.
  4. Describe the present structure of American trade unionism, indicating the relation of the national union to the other forms of organization.
  5. Classify American national trade unions from the point of view of function.
  6. Classify and discuss the methods of enforcement used by trade unions.
  7. What is meant by collective bargaining? What is the economic justification for collective individual bargaining?
  8. Describe the system known as scientific management and indicate why it has been opposed by trade unions.

 

POLITICAL ECONOMY VI
Corporation Finance

Monday, May 26, 1924

  1. Define a “bond”. Describe the following classes of bonds: divisional bonds, guaranteed bonds, income bonds, convertible bonds.
  2. Distinguish the capitalization, the capital, and the capital stock of a corporation.
  3. Distinguish equipment bonds and equipment trust certificates.
  4. Distinguish repairs, depreciation, and obsolescence.
  5. Discuss the relative advantages of serial bonds and sinking fund bonds.
  6. State and illustrate the law of balanced returns.
  7. Describe the various financial devices which have been used in the expansion of American railways.
  8. What is usually the nature of the agreement among the members under which an underwriting syndicate is formed?
  9. A corporation with common stock of $1,000,000 wishes to secure additional capital. The stock has a par value of $100 and is selling at $150. The corporation offers additional stock at par to the amount of $200,000, or one share of the new for each five shares held. What will be the value of the rights? What will be the value of the stock after the issue is consummated? Explain your answer.
  10. Define a “reorganization”, a “receivership”.

 

POLITICAL ECONOMY X
Business Organization

Monday, May 26, 1924—9 A.M.

Lectures

  1. Discuss the relation between the problem of distribution and the density of population, proportion of inhabitants living in cities, etc. What part does credit play in this problem? Is it a cause or an effect?
  2. What gains could be made in efficiency of our distribution system by the general state ownership and control of industry? Do you consider these possible gains sufficient grounds for the adoption of such a plan? (Reasons)
  3. What is meant by scientific management? Why is the present a logical time for its introduction into business? What is the purpose of motion study, and what does it consist of?
  4. Discuss the elements to be considered in locating an establishment. What is the proper balance between fixed and circulating capital (including investment in labor)? Why is (or is not) the cost-plus method of letting building contracts to be preferred to the lump sum method?
  5. Discuss the advantages and disadvantages of profit-sharing as a method of stimulating employee efficiency.

Text: Stockder

  1. What are securities? When is an industry said to be in the securities-capital stage? What are factors’ agreements? Why is it proper for railways to issue long term mortgage bonds, without sinking fund or serial retirement provisions, even to an amount exceeding the par value of stocks, and not for an ordinary industry to do so?
  2. Describe the joint-stock company operating structure. Why is the business trust said to be superior to all other forms of business organizations? Are these two forms of organization common law or statute law?
  3. Tell what you would do to organize a holding company which also to operate as an industrial company; including principal terms of agreements, regulations, etc.
  4. Describe the formation of the Standard Oil trust of 1882, using sketch. Is Federal Incorporation an effective or desirable remedy for commercial abuses? (Reasons)
  5. Have you completed the auxiliary reading, including supplementary forms in Stockder and pamphlets from U.S. Chamber of Commerce? If not, to what extent have you completed this reading?

 

POLITICAL ECONOMY XI
Accounting 1

January 30, 1924—9-12 A.M.

  1. [Given the following items:]
Cash $2,320
Inventory $12,000
Accounts Receivable $21,000
Reserve for Bad Debts $1,500
Store $20,000
Reserve for Depreciation $7,000
Accounts Payable $2,500
Capital Stock $20,000
Surplus $23,940
Insurance $120
Wages $500
$55,440 $55,400

Purchased on credit $20,000; paid creditors $21,500. Credit sales were $30,000; collected from customers $45,000. Estimated amount of uncollectable accounts receivable on books $1,750. Depreciation for period was $2,000. Other cash disbursements: Wates $6,000, Dividends $10,000. At the end of the year the unexpired insurance was $60, inventory $11,000, accrued wages $400.
From the above starting point—closing trial balance and the interim adjustments given, prepare a closed ledger, a final balance sheet, and a profit and loss statement.

  1. Describe two different ways of recording cash discounts on sales in the cash books. Do not mention any accounting books except the cash books.
  2. Define the different kinds of indorsements used with negotiable instruments.
  3. A note for $1,000, dated June 10, for 4 months, with interest at 7 per cent, was discounted July 30, at 8 per cent. Find the net proceeds under the rules of bank discount.

 

 

POLITICAL ECONOMY XI
Accounting 1
[Dr. Newlove]

May 28, 1924—9-12 a.m.

  1. A and B start in partnership investing $10,000 and $8,000, respectively, on January 1. A withdrew $2,000 on May 1 and invested $2,000 on November 1. B invested $3,000 on March 1 and withdrew $3,000 on July 1. Give the entries for the above transactions together with the allocation of a net profit of $5,000 on the average investment basis.
  2. X and Y, partners, sell their business to a new corporation, whose authorized stock of $50,000 is all paid to the partners. The balance sheet of X and Y is:
Cash $5,000 Accounts Payable $15,000
Merchandise 30,000 X, Capital 15,000
Accounts Receivable 25,000 Y, Capital 30,000
$60,000 $60,000

Give the detailed closing entries of the partnership.

  1. Give the detailed opening entries for the corporation in Problem 2.
  2. (a)
Accounts Receivable Reserve for Bad Debts
$75,000 $5,000

Make entry for a customer owing $500 who becomes bankrupt and pays 10 cents on the dollar.
(b)

Machinery Reserve for Depreciation
$50,000 $4,000

A machine, which cost $1,000 five years ago, is sold for $400. The recorded depreciation on the machine is $500. Give the entry for sale.

  1. C and D entered on January 1 a joint venture each contributing merchandise costing $5,000. C paid expenses of $1,000 on the same date. On July 1 C received a draft from the consignee for $15,000. Interest was allowed at the rate of 6 per cent per annum. Show the accounts on C’s books affected by the venture, if C settled with D on July 1.

 

POLITICAL ECONOMY XII
ECONOMIC HISTORY

January 29, 1924—9-12 A.M.

  1. How does economic history differ from political history?
  2. What did the Romans accomplish economically for Britain?
  3. (a) What were the rights and obligations of the various classes under the manorial system
    (b) Did William the Norman change the manorial plan fundamentally?
  4. How were goods exchanged in England of the Middle Ages?
  5. What were the facts which rendered the guilds suitable to the economic needs of the country at the time they flourished?
  6. (a) What were the consequences of the “Black Death”?
    (b) Of the “Peasants’ Revolt”?
  7. What were the main facts of the Industrial Revolution, and what was the economic theory upon which it rested?
  8. Tell something of (a) chartism; (b) the Factory Acts; (c) the rise of trade unions.
  9. What is the present status of child labor legislation in the United States?
  10. What have been the forces that have brought the Labor Party into power in England?

 

POLITICAL ECONOMY XII
ECONOMIC HISTORY

Saturday, May 24, 1924

  1. What were the colonial policies of Great Britain?
  2. (a) Give the chief economic doctrines of Alexander Hamilton.
    (b) What was the connection between economic interests and the formation of the Constitution?
  3. What were the chief economic causes and effects of the Civil War?
  4. Discuss the economic and political consequences of the opening of the West.
  5. What were the main routes covered by canals and railroads, and why were these selected?
  6. Discuss the growth of trusts.
  7. Why is the Federal Government gaining in power while the individual State Governments are losing power?
  8. A factory needing 500 operatives is located in a farming community. What will be the likely economic results?
  9. Discuss the tariff vs. free trade.

 

POLITICAL ECONOMY XIII
SOCIAL ECONOMICS

February 4th, 1924—9-12 A.M.

  1. Why are delinquency and dependency community problems?
  2. Give the laws regulating school attendance in Maryland. Are they adequate?
  3. Give the Child Labor Laws of Maryland.
  4. Give the significance of the White House Conference of 1909. State the recommendations made. Give what you think the most important outcome of this conference.
  5. Give the names of the social agencies in the Alliance of Charitable and Social Agencies. Describe the work of the Family Welfare Association and one other social organization in the federation.

 

POLITICAL ECONOMY XIII
SOCIAL ECONOMICS

Friday, May 30, 1924—9 a.m.

  1. What are the functions of a Charities Endorsement Committee?

  2. On what principles is social case work based? What is the difference in the meaning of social case work and social work?
  3. Of what value is knowledge of social economics to the professional and business man?
  4. Give the social functions of recreation.

 

Source:  Johns Hopkins University. Milton S. Eisenhower Library, Ferdinand Hamburger, Jr. Archives. Department of Political Economy, Series 5/6, Box 6/1, Folder “Exams, 1907-1924”.

Image Source: Gilman Hall, Johns Hopkins University. Hullabaloo 1924.

Categories
Exam Questions Johns Hopkins Undergraduate

Johns Hopkins. Undergraduate economics course exams, 1923

 

The archival collection of examinations in economics at Johns Hopkins University is extensive, if not complete. This post provides transcriptions for all the available copies of undergraduate examinations (along with course descriptions and staffing information) for the 1922-23 academic year. The Elements of Economics course was taught in three sections, the first of which (a) was designated as “academic” and the second (b?) was designated as “engineering”. It is not clear what the third section was except that it was taught by the lowest on the totem pole, the graduate student Robert C. Gillies, for whom a memorial from his Princeton Class of 1918 has been inserted into this post.

___________________

From the Princeton Alumni Weekly

ROBERT CARYLE GILLIES ‘18

In 1917, Bob Gillies left Princeton for war service. He rose to the rank of captain and served overseas with the 8th F.A. in WW I. Returning to the U.S. and Princeton, he graduated in 1920 and later earned a Ph.D. at Johns Hopkins. Bob became a research man in economics. He worked for the Assoc. of Railroad Executives and the Bell System.

About his subsequent life, during which we seldom saw or heard from him, we quote from a recent letter from his son Robert Gillies ’48:

“I am writing to tell you that my father died in West Berlin, Germany, on April 8. He was 86 years old. He moved to Washington in 1932 and worked for the government. In 1946 he went to Austria and Germany as an economist for the office of U.S. Military Government. He married while in Salzburg and had a daughter in 1950. His wife died in 1968. Shortly after this he retired and lived in West Berlin until his death.

“He returned to this country only once—when my wife and I were married in the University Chapel in 1947. However, his letters frequently referred to Princeton and his 1918 classmates.”

Source: Princeton Alumni Weekly, Volume 78 (September 26, 1977, p. 20).

___________________

Faculty and assistants providing undergraduate economics instruction in 1922-23

George Ernest Barnett, Ph.D., Professor of Statistics.
A. B., Randolph Macon College, 1891; Fellow, Johns Hopkins University, 1899-1900, and Ph.D., 1901.

William Oswald Weyforth, Ph.D., Associate Professor in Political Economy.
A.B., Johns Hopkins University, 1912, and Ph.D., 1915; Instructor, Western Reserve University, 1915-17.

Broadus Mitchell, Ph.D., Associate in Political Economy.
A.B., University of South Carolina, 1913; Fellow, Johns Hopkins University, 1916-17, and Ph.D., 1918.

Miss Theo Jacobs, Associate in Social Economics
A.B., Goucher College, 1901; Federated Charities of Baltimore (District Assistant, 1905-07, District Secretary, 1907-10, Assistant General Secretary, 1910-17, Acting General Secretary, 1917-1919.

Robert Carlyle Gillies, Graduate Student in Economics
A. B., Princeton University, 1920.

___________________

UNDERGRADUATE COURSES ANNOUNCED FOR 1922-23
(ex ante)

  1. Elements of Economics. Particular attention is given to the theory of distribution and its application to leading economic problems.
    Three hours weekly through the year. Associate Professor Weyforth and Dr. Mitchell.
  2. (a) Statistical Methods. After a preliminary study of the value and place of statistics as an instrument of investigation, attention is directed to the chief methods used in statistical inquiry.
    Three hours weekly, first half-year. Professor Barnett.
    (b) Money and Banking. The principles of monetary science are taught with reference to practical conditions in modern systems of currency, banking, and credit.
    Three hours weekly, second half-year. Associate Professor Weyforth.
  3. (a) Labor Legislation. The theory and practice of labor legislation are studied, with attention given to legal, economic and social considerations.Three hours weekly, first half-year. Dr. Mitchell.(b) Investments.Includes historical and analytical description of the more important forms of investments and theories of valuation and amortization.
    Three hours weekly, second half-year. Professor Barnett.
  4. (a) Labor Problems. The problems growing out of modern industrial employment will be studied. Three hours weekly, first half-year. Dr. Mitchell. (b) Corporation Finance. The theory and practice of corporation finance are considered, with particular reference to the problems presented in the United States.
    Three hours weekly, second half-year. Professor Barnett.[Course 4 will not be given in 1922-23.]
  5. (a) Foreign Trade and Exchange. The economic principles of international commerce, the methods of conducting foreign trade, and the theory and practice of foreign exchange will be studied.
    Three hours weekly, first half-year. Associate Professor Weyforth.
    (b) Economic History of the United States. This course deals with the economic development of the country and with the way in which the economic motive has influenced our history.Three hours weekly, second half-year. Dr. Mitchell.
  6. (a) Applied Statistics. The applications of statistics to business and economic problems, such as price levels, cost of living, wage adjustments, business cycles, and business forecasting, are considered.
    Three hours weekly, first half-year. Associate Professor Weyforth.
    (b) Public Finance. The theory and practice of finance are considered, with particular reference to the problems of taxation presented in the experience of the United States.
    Three hours weekly, second half-year. Dr. Mitchell.[Course 6 will not be given in 1922-23.]
    Note—Course 2 is open only to such students as have completed or are pursuing Course 1; Courses 3, 4, 5 and 6 only to students who have completed 1 and 2.

Source: The Johns Hopkins University Circular 1922 (Volume XLI, Whole Nos. 335-341), pp. 344-345.

___________________

UNDERGRADUATE COURSES REPORTED FOR 1922-23
IN ANNUAL JHU PRESIDENT’S REPORT
(ex post)

Professor Barnett, Associate Professor Weyforth, Miss Jacobs, Dr. Mitchell, and Mr. Gillies conducted the following undergraduate courses:

Political Economy I. Three hours weekly, through the year. Particular attention was given to the theory of distribution and its application to leading economic problems. (Associate Professor Weyforth, Dr. Mitchell, Mr. Gillies.)

Political Economy II. Three hours weekly, through the year. In the first half-year a preliminary study of the value and place of statistics as an instrument of investigation was made; attention was directed to the chief methods used in statistical inquiry. In the second half-year the principles of monetary science were taught with reference .to ·practical conditions in modern systems of currency, banking and credit. (Mr. Gillies and Associate Professor Weyforth.)

Political Economy III. Three hours weekly, through the year. In the first half-year, the theory and practice of labor legislation were studied. In the second half-year, attention was given to the theory of investments. (Professor Barnett.)

Political Economy V. Three hours, weekly, through the year. In the first half-year, the economic principles of international commerce, the methods of conducting foreign trade, and the theory and practice of foreign exchange were studied. In the second half-year, the course was designed not only to show the structure of typical business entities, but their methods of formation and expansion. Common forms of securities were examined. Operation and administration of business units were studied in detail. (Associate Professor Weyforth and Mr. Gillies.)

Political Economy VII. Two hours weekly, through the year. The history and development of charitable and social agencies were traced. Causes and treatment of cases of dependency and delinquency were discussed. (Miss Jacobs.)

Political Economy VIII. Three hours weekly, through the year. The course was designed to furnish a background for the study of economic principles and special phases of economic activity. The particular purpose of the course was to show the relationship between economic fact and economic and political theory and practice. (Dr. Mitchell.)

Source: Johns Hopkins University. Annual Report of the President, 1922-1923. In The Johns Hopkins University Circular, New Series, 1923, No. 7 (November 1923), pp. 57-58.

___________________

THE JOHNS HOPKINS UNIVERSITY
POLITICAL ECONOMY I A
Friday, Feb. 2, 1923 – 2-4 p.m.

  1. Describe the main features of the manorial system and the guild system in England.
  2. Explain the following terms: goods, face goods, economic goods, capital utility, diminishing utility, marginal utility, value, price, supply, demand, elasticity of demand.
  3. What is meant by the division of labor? Explain its advantages. What is the roundabout or capitalistic method of production? What are the requirements for the formation of capital?
  4. What are the more important types of business organization? Explain their respective advantages and disadvantages.
  5. What is meant by the gold standard? By the bimetallic standard? What factors led to the demand for the bimetallic standard in the United States between 1875 and 1896?
  6. Explain how changes in the quantity of money and in bank deposits may cause changes in the general level of prices.
  7. Explain the principal functions and the importance of commercial banks in our economic system.
  8. Outline the organization of the Federal Reserve System. How does it remedy some of the principal defects of the old national banking system.

*  *  *  *  *  *  *

THE JOHNS HOPKINS UNIVERSITY
POLITICAL ECONOMY I A (ACADEMIC)
May 28, 2-4 p.m.

  1. (a) What are the outstanding defects of the competitive system?
    (b) What did Marx say would result from competition?
  2. (a) What are the varieties of Socialism?
    (b) What is the difference between State Socialism and Guild Socialism?
  3. (a) Give reasons for the advance of labor unionism.
    (b) Why are unions justifiable?
    (c) Distinguish between craft and industrial unions, and comment upon the advantages of each.
  4. Should railroads in the Unites States be publicly owned? Give full reasons for your answer.
  5. What are the cardinal principles of taxation as stated by Adam Smith?
  6. What is the justification for the progressive income tax?

*  *  *  *  *  *  *

THE JOHNS HOPKINS UNIVERSITY
POLITICAL ECONOMY I B
Friday, Feb. 2, 1923 – 2-5 p.m.

  1. If you chose to pursue graduate work in political economy as a major subject, and were asked why you did not select history, political science, or psychology instead, what reasons would you give?
  2. What are the large divisions of the subject of political economy? Under which of the heads does the theory of rent fall?
  3. What is meant by the division of labor, when did it become a characteristic feature of our economic life, and what have been its chief consequences to workers? In what ways does the division of labor increase product?
  4. What do you think of the statement: “Value depends upon utility”? Explain fully.
  5. Arthur Young found the farmers in a part of England following inefficient methods of cultivation, and advised that the best remedy lay in a raising of the rents by landlords. hat do you think of his plan?
  6. What is the argument for the Single Tax?
  7. Were the Southern slaves capital?
  8. Name some items which are wealth in the individual sense but not in the social sense.
  9. Name some respects in which our present economic system is not competitive.
  10. Construct supply and demand schedules so as to show how a market price is determined.

*  *  *  *  *  *  *

THE JOHNS HOPKINS UNIVERSITY
POLITICAL ECONOMY I (Engineering)
May 28, 1923.

  1. What is credit? Explain its importance in business operations. Distinguish between commercial and investment credit. Define and illustrate a promissory note and a bill of exchange.
  2. Explain the theory that each factor in production tends to receive a share of the product corresponding to its marginal productivity.
  3. What is the principle that determines what goods a country imports and what goods it exports? Why is a high tariff in the United States detrimental to the exporting interest in this country?
  4. What is capital? How does it come into existence? What principles determine the return received by it?
  5. What are some of the outstanding economic characteristics of railroad transportation? Explain their bearing upon the following: (a) practice of charging what the traffic will bear; (b) large variations in net earnings with small variations in traffic; (c) cut-throat nature of the competition that has at times developed.
  6. Explain the theory of rent.
  7. Describe the various types of labor organizations. What are the arguments for and against the boycott, and the closed shop?
  8. What is socialism, anarchism, syndicalism? Give briefly the arguments for and against socialism.

*  *  *  *  *  *  *

THE JOHNS HOPKINS UNIVERSITY
POLITICAL ECONOMY I C
Friday, Feb. 2, 1923 – 2 p.m.

  1. (a) Which do you consider most important in the study of economic science: credit toward a college degree; training for business; culture; or preparation for citizenship? Just how do you think your study will contribute toward that end?
    (b) Discuss the proposition: Good ethics, good art, or good politics on the part of the masses is well nigh impossible without sound economics.
  2. Robinson Crusoe on his island was able to work out an efficient personal economy because he knew what he needed most and what to do next. Are the American people at a disadvantage in this respect? Are strikes and depressions partly a manifestation of that disadvantage? If so, how would you as a practical economist seek to remedy this situation? Defend your remedy.
  3. A small savage tribe gradually develops into a great nation. What would be the accompanying evolution in economic practice?
  4. Discuss the following statement: “In 1770 Arthur Young reckoned the income of England to be £120,000,000; in 1901 the income may be roughly set down at £1,600,000,000. Making correct allowances for population and for prices, this growth of income would signify a large increase of commodities per head; but would it tell us that we are working and living better than our ancestors?”
  5. It is said that the spender is a greater asset to economic society than the saver, because he puts his money back into circulation. Discuss.
  6. (a) A new labor-saving device is put into operation, throwing a large class of skilled workmen out of employment. To what extent is this a hardship to labor, a benefit, or both? Explain.
    (b) Criticize the cost of production theory of value.
  7. Name a large industry in which there holds a condition of increasing expenses. How does introduction at successive intervals of labor-saving machinery and more scientific technique affect this condition? Draw what you consider a unit expense curve for this industry over several such intervals. Are monopolies likely to occur in a field of increasing expenses? Would the ratio of fixed to total expenses of the typical business unit be high or low in such a field?
  8. What is the fallacy of bi-metallism? Of fiat money? Connect the value of an elastic currency (from the standpoint of the nation’s business) with the quantity theory of money.

    *  *  *  *  *  *  *

EXAMINATION IN POLITICAL ECONOMY I C. MR. GILLIES
May 28, 1923

  1. (a) A small increase in the supply of a certain article results in a heavy decrease in price. Does this signify an elastic or an inelastic demand?
    (b) A reduction in price of an article from 12¢ to 10¢ results in increased sales of 10 per cent. What is the numerical measure of the elasticity of demand?
    (c) What is the difference in the usual methods of weighting commodity price index numbers and cost of living index numbers?
  2. Define (a) bill of exchange (b) long bill (c) purchasing power parity (d) doctrine of comparative costs.
    How are exchange rates kept approximately normal?
    Draw up a “balance sheet” for a year’s transactions between the United States and Europe, including the principal invisible exchanges.
  3. What is your view point concerning protection? Support and defend your position.
  4. How is the apportionment of the total product among the various factors of production determined?
  5. Why do we distinguish between the “intensive” and the “extensive” margins? To which factors of production do they apply? Are they usually found in conjunction? Give reasons.
    What are some of the conditions affecting the supply of labor? How is it affected by legislation enacted already? What is the philosophy of workmen’s compensation laws?
  6. What determines the rate of interest? What is meant by a “free production good”? Is the accumulation of capital a help or a menace to labor? Are waste, loss, destruction of property by fire, etc., a benefit to labor in the long run? In the short run? Explain.
  7. Why do we call the railway industry one of increasing returns? Of joint costs? Is the proportion of fixed capital high or low? What have these facts to do with rates?
    Roughly, how are railway revenues divided up among the four factors of production? Do you think physical valuation should determine railway profits? If so, would you take original cost or present value? Why?
  8. What has been the tendency of public expenditures in the last century as to (a) purposes (b) proportion of national income absorbed? Does an increase in this proportion indicate inefficiency or extravagance? Are there any dangers in such an increase? Explain.
    What policy do you favor for the disposal of our remaining public land?
    If a tax policy were founded upon the more nearly equal distribution of wealth, would it meet with your approval? Why? What forms of taxes do you think would be emphasized under this policy? Why?CAUTION. This examination will be used Friday, June 1, 1923 also. Do not, therefore, discuss or divulge its contents in any way.

*  *  *  *  *  *  *

THE JOHNS HOPKINS UNIVERSITY
EXAMINATION IN STATISTICS (POL. ECON. II)
Feb. 1, 1923, 9 a.m. – 12 m.

  1. (a) Under what circumstances is it best for the statistician to carry out his own primary investigations? Are there any disadvantages in this method?
    (b) You have an appropriation of $100,000 with which to investigate the degree of education attained by adults in a community. You decide to employ enumerators. Salaries and expenses of enumerators is estimated at $40,000 and printing the report of your inquiry will cost $10,000. Each question asked by the enumerators will cost $10,000 to tabulate. Draft a form for them to use, with such questions as you think suitable.

20 minutes

ARRAY OF LEAF-LENGTHS
(in millimetres)

Item

 Item Item Item Item Item Item Total
15 19 21 21 23 26 29

154

16

 19 21 21 23 26 29 155
16 19 21 21 23 26 29

155

16

 19 21 21 23 26 29 155
17 19 21 22 23 26 30

158

17

 20 21 22 24 26 30

160

17

 20 21 22 24 27 30 161
18 20 21 22 24 27 31

163

18

 20 21 22 24 27 31 163
18 20 21 22 24 27 32

164

18

 20 21 22 24 27 32 164
18 20 21 22 25 27 32

165

19

 20 21 22 25 28 33 168
19 20 21 23 25 28 33

169

19

 20 21 23 25 28 35

171

2425

a = 23.5

  1. The above is a tabular representation of an array of leaf lengths. Work up this information as a frequency table, both simple and cumulative, in seven classes.
    a. Cross check the given table and find if the value of a shown is correct. (This work may be done on the question paper, which should then be submitted at close of examination. Or, describe what you did on answer paper).
    b. The items in the given table are correct to the nearest millimeter. How many decimals would be justified as accurate in a? (Probable error equals possible error divided by the square root of n).
    30 minutes
  2. Plot the data in your frequency table as a histogram. Smooth and estimate the mode. How would you convert your data to plot as a percentage histogram? Plot as an ogive and smooth. Locate the median and quartiles.
    20 minutes
  3. What method would you use to locate the model class when poorly defined? What is the easiest way to locate the mode within a given class? Give formula.
    Find the coefficient of dispersion, using the average deviation from the mode. How would you modify procedure if using the median or the arithmetic average? Calculate the quartile coefficient of dispersion.
    20 minutes
  4. Compute the standard coefficient of dispersion. Give formula for the coefficient of skewness based upon this coefficient. Calculate the coefficient of skewness based upon the average deviation from the mode, also that based upon the quartiles.
    30 minutes
  5. Draw a grid to scale for a logarithmic historigram. How do you plot points for this historigram? Find the weighted index number of prices for the following group of commodities, using 1913 as a base:

COMMODITY PRICES

Article

 Production Unit 1913 1914 1915 1916 1917 1918 1919 1920
Wheat 100 bushel $1.04 $1.09 $1.29 $1.47 $2.35 $2.31 $2.34

$2.65

Corn

 300 bushel .71 .79 .84 .93 1.78 1.84 1.77 1.67
Cotton 1.2 bale 64.00 55.50 50.50 72.00 117.50 158.50 161.50

173.00

Pig Iron

 3.2 tons 15.00 13.40 13.60 18.70 40.00 36.50 32.00 44.00
Copper 130 pounds .15 .13 .17 .27 .27 .25 .19

.17

Note: Production used is that for year 1919 (approximate) and is in tens of millions.
Plot the weighted index and apply Marshall’s method comparing the proportional rates of increase from 1913 to 1915 and from 1916 to 1920.

30 minutes

 

7. Compute Karl Pearson’s coefficient of short time correlation between supply and price in following table:

INDICES OF SUPPLY AND PRICE

Date

 Supply Price Date Supply Price
1880 80 146 1890 91

103

1881

 82 140 1891 94 94
1882 86 130 1892 100

75

1883

 91 117 1893 105 66
1884 83 133 1894 102

75

1885

 85 127 1895 96 91
1886 89 115 1896 98

87

1887

 96 95 1897 106 81
1888 93 100 1898 114

76

1889

 90 106 1899 112

82

Probable error = ?

Indicate your procedure in case concurrent deviations are used. Formula?
Show how you would find the ratio of variation for long time changes in this data by the Galton graph. Does the Galton graph apply wholly to historical variables ? Why is it necessary for this graph that both variables be reduced to index numbers?

30 minutes

*  *  *  *  *  *  *

JOHNS HOPKINS UNIVERSITY
[POLITICAL ECONOMY 2B]
MONEY AND BANKING
TUESDAY, MAY 29, 1923, 9-12 AM.

  1. What is standard money? State the requisites of:
    (a) A gold standard
    (b) A bimetallic standard
    (c) A paper standard.
    State the advantages and disadvantages of each.
  2. Outline the principal legislation in the monetary history of the United States.
  3. Explain the importance of credit in our present economic system. How does a bank judge of the credit standing of a borrower?
  4. Classify and describe the different kinds of loans made by commercial banks. What is the general type of loan that is most suitable for a commercial bank?
  5. Describe the operations of a commercial paper house. Explain the advantages and disadvantages of this method of financing.
  6. Explain the need for elasticity in currency and elasticity in credit. How did the Federal Reserve System remedy the defects of the old National Banking System in these respects?
  7. Describe the organization of the Federal Reserve System.
  8. What is the need for control of bank credit. How may this control be effected under the Federal Reserve System?

*  *  *  *  *  *  *

THE JOHNS HOPKINS UNIVERSITY
POLITICAL ECONOMY 3 [A. Labor Legislation]
Thursday – February 1, 1923

  1. What provisions in the Federal Constitution are important with respect to labor legislation, state and national?
  2. On what grounds were the two Federal child labor laws declared unconstitutional?
  3. How far may the states go in regulating hours of labor? Trace the constitutional history of such legislation.
  4. Discuss the economic arguments for and against immigration.
  5. When is a strike illegal?
  6. Distinguish the trade union “minimum” wage and the legal “minimum” wage.
  7. Discuss the economic considerations relating to a reduction of hours of adult laborers from nine to eight in a particular trade.
  8. Describe the Liverpool Dock Scheme. What economic result is effected? How fare is the scheme applicable to other industries?

*  *  *  *  *  *  *

THE JOHNS HOPKINS UNIVERSITY
POLITICAL ECONOMY 3 [B. Investments]
May 29th, 1923. 9—12 A.M.

  1. Distinguish capital, capital stock and capitalization.
  2. How much (roughly) is $1000 in 1930 worth now? How much is $1000 in 1940 worth now? Explain.
  3. Under what circumstances is a city justified in incurring a debt? Is the City of Baltimore justified in borrowing money to pay for school houses?
  4. Distinguish speculation from investment.
  5. What are the elements in an investment which the purchaser buys? Why are there no “absolutely” good investments?
  6. Appraise a savings bank deposit as an investment by breaking it up into its elements. A bond of the State of Maryland.
  7. To what extent are the obligations of the State of Maryland enforceable?
  8. Discuss the tests of “ability to pay” applicable respectively to states and private corporations.

*  *  *  *  *  *  *

Dr. Weyforth.
POLITICAL ECONOMY V
FOREIGN TRADE AND EXCHANGE
Monday – January 29, 1923 – 9 a.m.

  1. How do you account for England’s unfavorable balance of trade prior to the war and the favorable balance of the United States? What is likely to be the future of the balance of trade of the United States?
  2. What selling policies are open to a manufacturer contemplating foreign business? Explain their respective advantages and disadvantages.
  3. In quoting terms of sale the seller may require any of the following: (a) advance payment by importer; (b) payment by importer upon delivery of goods; (c) deferred payment by importer. What methods of international payment can be used for carrying out these various terms?
  4. Describe the operation of an import credit on New York from the beginning to the end of the transaction.
  5. What are the factors determining the actual rates of exchange between a gold standard country and a paper standard country?
  6. Explain the operations involved in drawing a sterling draft on South America.
  7. What factors contributed to the preeminence of sterling exchange as an international medium of exchange?
  8. What is the importance of a wide discount market in maintaining and extending the use of dollar exchange?

*  *  *  *  *  *  *

POLITICAL ECONOMY 5.
Business Organization
June 1, 1923

  1. Have you completed the assigned reading including the supplementary forms in Stockder? If not, indicate the extent of completion.
  2. Define (a) business establishment, (b) entrepreneur, (c) circulating capital, (d) securitization, (e) common law, (f) treasury stock, (g) municipal corporation, (h) voting trust, (i) court of equity, (j) underwriter, (k) scientific management.
  3. Compare the individual proprietorship, the partnership, the joint stock company and the corporation as to
    (a) place in the development of the capital concept;
    (b) extent of present day use;
    (c) suitability for various types of business;
    (d) legal status and requirements;
    (e) control, and liability of the component members.
  4. (a) What is the participation association and how did it originate?
    (b) What types of partners may bind the firm? Which types have limited liability?
    (c) and (d) Describe the operating structure of the corporation.
  5. (a) Describe the characteristics of the business trust that distinguish it from the forms of business organization already mentioned.
    (b) Distinguish associations from federations and illustrate by examples.
  6. (a) How do control companies control their subsidiaries? Does this form of business organization lend itself more readily to vertical or to horizontal combination? What purposes do finance and assumption companies serve?
    (b) Name some abuses of “big business” and show how the law has attempted to curb them.
  7.  -8. You are the organizer, and, later, the general administrator of a large manufacturing plant, employment both men and women. (a) Whom would you bring in to assist the promotion? (b) How would you determine the location of your plant? (c) How would you lay it out? (d) How would your buildings be designed? What type of construction would you use, and how would you give your contracts for them? (e) How would you organize the shop forces? (f) What plans of wage payments would you use in the various departments? (g) What welfare work would you institute? (h) How would you organize your selling department? (i) What accounting systems would you use?

Re-examination in Business Organization
A. L. Tuvin

  1. Discuss the joint stock company. Point out the similarities between it and the partnership; and also between it and the corporation.
  2. Discuss the conditions which are conducive to successful combination.
  3. What is meant by fair competition? Give an illustration of unfair competition.
  4. Describe the agencies in the U. S. which are designed to secure fair competition.
  5. What is a holding Company? Give its advantages and disadvantages. Discuss briefly the various forms.

*  *  *  *  *  *  *

THE JOHNS HOPKINS UNIVERSITY
January 29, 1923, 9 A.M.—12 M.
[POLITICAL ECONOMY (12?)]
Economic History

  1. What is the importance of economic history, and why do we place more emphasis upon English than upon American economic history?
  2. What was the significance of Doomsday Book? What were the differences that distinguished the problems of the Norman kings from those of the Saxon kings?
  3. How did serfdom originate and how did it disappear in England? Give a full answer.
  4. How did the economic practices of the gilds differ from those of industry nowadays? Distinguish briefly between the domestic system, the factor system, and the factory system.
  5. What were the results of inflation following the Black Death?
  6. What is the fallacy of mercantilism? What economic writer gave chief opposition to the mercantilist philosophy?
  7.  Name as many books as you can, that you have read, which, although not in the field of economic history proper, yet contain information of interest to the student of this subject? The books may concern either English or American conditions.

Source: Johns Hopkins University. The Ferdinand Hamburger, Jr. Archives, Eisenhower Library. Department of Political Economy, Series 5/6. Box: 6/1. Folder: Department of Political Economy, Exams, 1907-1924.

Image Source: Webpage “Gilman Hall circa 1920” in the Hopkins Perspective, 1876-Today collection.