Author: Irwin Collier

Categories
Exam Questions Harvard Principles Undergraduate

Harvard. Principles of Economics. Description, Enrollment, Exam Questions. Andrew, Mixter, and Sprague. 1902-1903

Over 500 students enrolled in the introductory course “Outlines of Economics” offered at Harvard in 1902-03. Frank Taussig continued his sick-leave through the academic year 1902-03 which is why his name was listed in the (ex ante) course description from June 1902 but not included in the departmental staffing report to the president (ex post) for 1902-03. 

Artifacts for the same course offered during the academic year 1901-1902 have been posted earlier. It is worth noting that of the three required texts listed below, Hadley’s Economics replaced Walker’s Political Economy (Advanced Course) that had been assigned for the previous year.

Fun Fact: Gilbert Holland Montague, one of the teaching assistants, left economics to become an anti-trust lawyer who quite apparently had the means to collect over 15,000 books and 20,000 pamphlets during his lifetime. He even owned a 14th century copy of the Magna Carta.

______________________________ 

Course Description, 1902-03
Economics 1

Course 1 is introductory to the other courses. It is intended to give a general survey of the subject for those who take but one course in Economics, and also to prepare for the further study of the subject in advanced courses. It is usually taken with most profit by undergraduates in the second or third year of their college career. Students who plan to take it in their first year are strongly advised to consult the instructor in advance. History 1 or Government 1, or both of these courses, will usually be taken to advantage before Economies 1.

[…]

Primarily for Undergraduates

  1. Outlines of Economics. — Lectures on Social Questions and Monetary Legislation. , Th., Sat., at 11. Professor [Frank W.] Taussig, Drs. [Abram Piatt] Andrew, [Oliver Mitchell Wentworth] Sprague, and [Charles Whitney] Mixter, and Messrs. [Gilbert Holland] Montague and [Vanderveer] Custis.

Course 1 gives a general introduction to economic study, and a general view of Economics for those who have not further time to give to the subject. It undertakes a consideration of the principles of production, distribution, exchange, money, banking, and international trade. The relations of labor and capital, the present organization of industry, and the recent currency legislation of the United States, will be treated in outline.

Course 1 will be conducted partly by lectures, partly by oral discussion in sections. A course of reading will be laid down, and weekly written exercises will test the work of students in following systematically and continuously the lectures and the prescribed reading. Large parts of Mill’s Principles of Political Economy, of Hadley’s Economics, and of Dunbar’s Theory and History of Banking will be read; and these books must be procured by all members of the course.

Source: Harvard University. Faculty of Arts and Sciences, Division of History and Political Science [Comprising the Departments of History and Government and Economics], 1902-03. Published in The University Publications, New Series, no. 55. June 14, 1902.

______________________________ 

Course Enrollment, 1902-03
Economics 1

Primarily for Undergraduates:—

Economics 1. Drs. [Abram Piatt] Andrew, [Oliver Mitchell Wentworth] Sprague, and [Charles Whitney] Mixter, and Messrs. [Charles] Beardsley [Jr.], [Vanderveer] Custis, and [Gilbert Holland] Montague. — Outlines of Economics.

Total 514: 2 Gr., 25 Se., 108 Ju., 270 So., 39 Fr., 70 Others.

Source: Harvard University. Annual Report of the President of Harvard College, 1902-03, p. 67.

______________________________ 

Mid-year Examination 1903
Economics 1

Omit one question

  1. The population of the United States has increased from 23 millions in 1850 to about 80 millions in 1902 (not including the population of the islands acquired from Spain), and yet the “standard of living” has not fallen. Can you reconcile this with the Malthusian theory?
  2. “Economic rent and net profits are like the producers’ and consumers’ surplus described at the beginning of the chapter in being differential gains. . . .”
    Explain these terms and discuss Hadley’s comparison of profits and rent.
  3. How in your opinion does the use of labor-saving machinery in agriculture affect the value of agricultural produce, and the rent of agricultural land?
  4. What would you suppose to be the effect of immigration upon the production of wealth, upon wages, and upon the value of land in the United States?
  5. A recent Secretary of the Navy, in defending large naval appropriations, wrote as follows: “It is a taking thing to say that $100,000,000 could be better spent for education or charity; and yet, on the other hand, $100,000,000 spent in the employment of labor is the very best use to which it can be put. There is no charity in the interest of the popular welfare or of education so valuable as the employment of labor.”
    Discuss the economic argument implied in this statement.
  6. Should a railroad be compelled to charge the same rate per ton-mile for all goods of equal bulk? Why? or why not?
  7. Suppose that one piano manufacturer buys out all of the other piano manufacturers in the country, can he now sell the former aggregate output of all the factories at an advanced price? Give reasons for your answer.
  8. Explain by the theory of the value of money why prices are high in times of speculation and low when a period of depression sets in.
  9. Could a paper currency depreciate in value, if a government pledged the public lands for its redemption? Give reasons.

Source: Harvard University Archives. Mid-year Examinations 1852-1943. Box 6. Papers (in the bound volume Examination Papers Mid-years 1902-1903).

______________________________ 

Year-end Examination 1903
Economics 1

Omit one question from each group.

I

  1. What is meant by

unearned increment,
marginal utility,
double standard,
rapidity of circulation?

  1. Explain the relation of the law of diminishing returns to rent.
  2. It wages are determined by the productivity of labor, how would you explain the circumstance that labor organizations which impose restrictions upon individual output, have been accompanied by a rise of wages?
  3. What considerations are likely to determine the prices of trust-made commodities?

II

  1. In what ways would the repeal of our tariff duties affect our export trade?
  2. Former Speaker Reed, in an article on Protection, said: “Any system which enables our people to do our own work is a system which can give the best results. . . . The whole nation gets the benefit of it?”
    Discuss this statement.
  3. Give the principal reasons for and against the adoption of the policy of the single tax.
  4. How is the community served by the produce exchanges? by the stock exchanges?

III

  1. (a) What kinds of money are susceptible of increase under existing legislation in the United States? In what way?
    (b) In what way do clearing house loan certificates add to the circulating medium?
    Under what circumstances may they be issued?
  2. Suppose the deposits of the national banks to increase one hundred million dollars, would the position of the banks be rendered stronger thereby?
  3. Are the national banks of the United States unfairly granted the privilege of earning a double profit in respect to their circulation?
  4. In his last annual report, the Secretary of the Treasury writes: “I think a far better course for the present at least would be to provide an elastic currency available in every banking community and sufficient for the needs of that locality. This, I think, can be accomplished . . . . by several methods.”
    Explain some of these methods.

Source: Harvard University Archives. Examination Papers 1873-1915. Box 6. Papers Set for Final Examinations in History, Government, Economics, History of Religions, Philosophy, Education, Fine Arts, Architecture, Landscape Architecture, Music in Harvard College, June 1903 (in the bound volume Examination Papers 1902-1903).

Image Sources: Abram Piatt Andrew (1920) from Wikimedia Commons. O.M.W. Sprague from Harvard Class Album 1920, p. 25.

 

Categories
Berkeley Columbia Cornell Economists Harvard Illinois Johns Hopkins Wisconsin

USA. Joseph Schumpeter’s Roadshow. 1st Quarter, 1914

Joseph Schumpeter spent the 1913-14 academic year as Austria’s first exchange professor at Columbia University. But before heading home, he went on a whirlwind tour of American universities as documented in the following collection of news reports. Cornell, George Washington, Johns Hopkins, the Universities of Illinois, Wisconsin, and California, and apparently culminating with lectures in Taussig’s Ec 11 course at Harvard. All this between mid-January and mid-March 1914.

I have not seen the above portrait of Schumpeter before. He looks much less like Nosferatu’s twin and one could say has even leading-man material if only his ears were pinned back a notch.

_____________________________

Dr. Schumpeter Near End of Course as Austrian Exchange Professor at Columbia University

Professor Joseph A. Schumpeter, who was sent to this country by the Austrian Government as an exchange professor, will soon complete his course of lectures on economic theory and on the problem of social classes, at Columbia University, where he has been since last October, and will visit a number of other leading universities in this country.

Professor Schumpeter was born in 1883, in Triesch in the Austrian Province of Moravia, and was educated at the “Theresianum” in Vienna. Then he entered the University of Vienna where he took his degree of Doctor in Law and Political Science in 1906, and gained locally some representation within the little circle of students of economic theory called the Austrian School. After spending some years in travel, he began lecturing on economies at the same university from which he was, at the age of 26, called to the chair of Political Economy in the University of Gernowitz. In 1911 he accepted a call to the University of Graz in Styria. When the Austrian Government, following the example given by the German Government, concluded an agreement with Columbia University for the exchange of professors, Schumpeter was selected to be the first visiting professor in this country.

Source: The Brooklyn Daily Eagle. January 14, 1914, p. 12.

_____________________________

Predicts More War in Balkan Frontier

“Conditions as they exist in the Balkans now cannot last, I am sorry to say that the sad story of crime and suffering that we have been witnessing we shall have to see over again before long,” said Prof. Joseph Schumpeter in his lecture last night on “Austria’s Balkan Policy.”

“The Balkan situation awakens in us a multitude of passions,” said Dr. Schumpeter. “We see burning and murdered villages, and conditions growing worse and worse. Austria is very little known.

“A lot of false notions have arisen concerning Austria. It is a country of 50,000,000 inhabitants composed of a combination of different races and therefore gives statesmanship tasks of a peculiar kind. It is impossible to appeal to national patriotism in Austria for it is composed of several races apathetic to each other. The majority of the people are Slavs, but there are a great many Germans, Romanians, Italians and Servians. It is very difficult to adjust their claims for national supremacy.

“To keep the Turkish frontier is still Austria’s main care.

“What Austria wanted, and wants still, is to have a group of states on national lines so arranged that they will last for some time and not be under the influence of Russia. The Albanians held their own against Turkey for some time and finally Austria made a treaty with Italy that, no matter what happened to Turkey, they should combine to save the Albanian state.”

Source: The Ithaca Journal. January 17, 1915, p. 5.

_____________________________

Admires Quick Wit Found in America

Professor Joseph Schumpeter of the University of Graz, Austria, expresses himself as delighted with Cornell University and everything he has seen here. Professor Schumpeter, who gave the lecture on “The Balkan Policies of Austria,” is now Exchange Professor at Columbia University. He has gained the reputation of being one of the most promising economists of Europe.

“You have a wonderful University here, splendidly equipped,” he declared. “The situation is ideal. I have been very much interested in my work at Columbia and feel that we Europeans can learn a lot from you. My work at Columbia has been mostly with the graduate students and I have not been able to get into as close touch with the undergraduates as I would have liked to. I have been especially struck by the quick-wittedness and energy of the American undergraduates. They also have an aptitude for intelligent discussion which is lacking in Europe. The whole spirit of fellowship is so splendid.

“The social life in America is remarkably pleasant. In other countries you take much longer to make friends. In my short stay here I have already made scores of excellent friends. American audiences are also so pleasant to talk to. I feel less intellectual sympathy while talking before a German audience than I do here. Unlike Europe all classes of society seem equally interested, the workingmen as much so as the richest families.”

Source: The Ithaca Journal, Jan 19, 1914, p. 9.

_____________________________

Talk on the Balkans by Prof. Schumpeter
University of Gratz Educator Entertains Audience at National Museum

Prof. Joseph Schumpeter delivered a lecture on the present and prospective situation in the Balkans at the New National Museum last night, to which the general public was invited, the audience including students of the eastern question and a number of diplomats. Dr. Schumpeter is exchange professor between the University of Gratz, where he is professor of political science and economics, and Columbia University, New York, where he has just completed his series of lectures.

Last night’s address was delivered under the auspices of George Washington University, and Dr. Schumpeter was introduced by Rear Admiral Charles Herbert Stockton, U. S.N., retired, president of George Washington.

Dr. Schumpeter gave an historical account of the development of the Ottoman empire from the conquest of Constantinople in 1453 up to the present time. He declared that outside of Greece, where the situation has been practically clarified, the Balkan troubles have not been set at rest, and that further trouble may be expected in the Balkan countries at any time.

Real Root of Troubles.

He pointed out that the real root of many of the troubles of those countries has been differences because of race, the clash between Mohammedan and Christian, which he said is likely to continue to the end of the world. He offered, for example, the experiences of Great Britain, in charge of the largest number of Mohammedans in the world, in India.

Dr. Schumpeter devoted considerable attention to the part that Austria-Hungary is playing in the Balkan situation. Since 1908 the Balkan provinces of Bosnia and Herzegovina have been recognized as a part of Austria, and it is around the possession of these provinces that considerable interest lies. Austria-Hungary was permitted by the congress of Berlin in 1878 to occupy and administer these two Balkan provinces, but it was not until 1908 that they were formally annexed.

Source: Evening Star (Washington, D.C.), February 5, 1914, p. 9.

_____________________________

Balkan War Policy of Austria Defended
Prof. Schumpeter Says Nation Must Control of Principalities Along the Danube.
Great Britain is Criticised.

John Bull was said to have in his charge the greatest Mohammedan power in the world by Prof. Joseph Schumpeter, professor of political science and economics at the University of Gratz, Austria, in an Interesting lecture last night at the National Museum.

“No less than 90,000,000 Mohammedans are under British rule, yet England has seen fit to attack the right of Austria to establish a mere legal pact by taking over Herzegovina and Boris and assuring to these two countries safety and security,” said Prof. Schumpeter.

Rear Admiral Stockton, president of Georgetown University, under the auspices of which institution the lecture was given, presided.

Prof. Schumpeter gave a comprehensive historical account of the development of the Ottoman empire since the conquest of Constantinople, in 1453, up to the present day.

In closing, Prof. Schumpeter asserted that in his opinion, outside of Greece, where he said the situation has been pretty well clarified, the Balkan troubles have not been definitely put at rest. He made it clear that he looked for further trouble.

Source: The Washington Herald, February 5, 1914, p. 3.

_____________________________

Predicts Third Balkan War.
Prof. Schumpeter of Austria, Is Pessimistic in Lecture.

Under the auspices of George Washington University, Prof. Joseph Schumpeter, dean of political science and economics at the University of Gratz, Austria, and exchange professor between his university and Columbia, spoke Wednesday in the auditorium of the new National Museum on “The Balkan Situation from the Austrian Viewpoint.” Among those present were Konstantin von Masirevich, first secretary, and the Baron Freudenthal, attache of the Austrian embassy; Rear Admiral C. H. Stockton, president of George Washington, Prof. Richard Cobb, secretary of the university; Dean Charles E. Munroe, Dean Charles Noble Gregory and L. Cleveland McNemar, assistant professor of international law.

Prof. Schumpeter claimed that the Austrian annexation of Bosnia and Herzogovina in 1910 was warranted by circumstances. He said that Balkan peace is merely transitory; that another war is sure to come.

Source: The Washington Post, February 8, 1914, p. 2.

_____________________________

Johns Hopkins University.

Two foreign educators lectured at the Johns Hopkins university last week. Dr. Joseph Schumpeter, of the University of Gratz, and first Austrian exchange professor at Columbia, delivered five lectures before the department of political economy….

Source: The Oregon Daily Journal. February 15, 1914, p. 48.

_____________________________

Vienna Man at Madison.
Exchange Professor Studies Wisconsin Industrial Laws.

(Special to The Northwestern.) Madison, Wis., Feb. 10. — Dr. J. A. Schumpeter, exchange professor from Vienna to Columbia university, spent today here investigating the work of the state industrial commission. He will leave tonight for St. Paul, where he intends to make a similar investigation. Dr. Schumpeter is a recognized expert on labor legislation, and in addition to investigating the work of the commission held a conference with Prof. John R. Commons.

Source: The Oshkosh Northwestern, February 10, 1914, p. 9.

_____________________________

Professor Schumpeter has very busy two days here.
Austrian makes four addresses and attends several affairs.

Four addresses were given by Prof. Josef Schumpeter during his stay here from last Saturday morning until Sunday night, when he left for the University of California via Chicago. All of his addresses were along the line of the social sciences in which he enjoys wide fame for his great ability.

Professor Schumpeter’s first talk was given Saturday noon to the University Club where he took lunch. There he gave a talk on smoke. His second, and most important address, was to the combined seminars of the social science departments. It was given in room 304 of Lincoln Hall to an audience which contained almost every faculty and student member of the two seminars. His discussion was upon the theory of economic development. The lecturer paid especial attention to the place of interest and economic crises in static and dynamic states. Although he is an Austrian. and from the University of Graz, his lecture was delivered in perfect English, and was of profound interest to those who were privileged to attend.

With some eighteen University people, Professor Schumpeter took dinner at the Beardsley Saturday evening. Here again he spoke, this time giving an address on “The Austrian Attitude to the Balkan Situation.” He was followed by Professors E. B. Greene, A. H. Lybyer, L. M. Larson and W. F. Dodd, each of whom spoke on some aspect of world politics.

A reception was given the Professor at the home of Dean Kinley on Sunday afternoon. Here he addressed those present on “The Aspects of Austrian Social and Political Life in University Government.” Sunday night, Professor Schumpeter took the train for Chicago.

Source: The Daily Illi (Urbana, Illinois). February 17, 1914. Page 4.

_____________________________

Talks of Marx’ Economy

University of California, Feb. 25. — Dr. J. A. Schumpeter, eminent Austrian economist, addressed an audience at California hall yesterday on “The Economy of Karl Marx.” Among the points he made were that one could believe in Marx’ doctrines without being a Socialist; his theories of value and exploitation of the working class were receiving more and more general acceptance; he was a “flaming propagandist whose followers regarded him as little less than inspired.”

He addressed also during the day classes in economics on interest rates and classical and modern economic theories.

Source: Oakland Tribune. February 25, 1914, p. 4.

_____________________________

Brings Austria’s Message to Both Columbia and Harvard

The first Austrian exchange professor at Columbia will deliver a series of lectures on economic theory at Harvard in March. His lectures will be in connection with some of the courses given by Professor Taussig on economic theory.

Professor Schumpeter was born in Triesch, Moravia, in 1883, and received his early education in Vienna, where he also attended the University. He was awarded the degree of doctor of law and political science in 1906 and after spending several years in travel, established himself as a docent at the University of Vienna in 1909. A few months later, he was appointed professor of political economy in the University of Czernowitz, and in 1911 he was appointed professor of political economy in the University of Graz.

Professor Schumpeter’s own system of economic theory is developed in two books, “Wesen und Hauptinhalt der Theoretischen Nationalökonomie” and “Theorie der Wirtschaftlichen Entwicklung.” In addition, he has published a number of important papers. He has also contributed a history of economic theory to Schönberg’s “Handbuch der Politischen Oekonomie,” which is to appear shortly, and has furthermore prepared a treatise on banking law for a manual of mercantile law to be published in the near future.

In recent years Professor Schumpeter’s interest has been largely in the field of sociology, but he has not yet published anything in this department. As an economist, Professor Schumpeter is a member of the Austrian school — the brilliant group of writers headed by Böhm-Bawerk and Wieser of the University of Vienna, who have rescued economic theory from the eclipse with which it was for a time threatened by the able but exaggerated criticisms of the leaders of the German historical school. Though agreeing with his Viennese colleagues in many of their theories, he has shown great independence and originality in his treatment of the phases of economics, such as the interest problem, to which he has given particular attention. Thus, in spite of his comparative youth, he has won a place in the very front rank of contemporary European economists. His fluent command of spoken English and his intimate knowledge of American economic literature make him a most attractive lecturer.

Source: Boston Evening Transcript. February 4, 1914.

_____________________________

“The Theory of Crises”at 4.30
March 16, 1914

Professor Josef Schumpeter, an Austrian economist of the University of Vienna, will lecture upon “The Theory of Crises” before the Seminary of Economics in Upper Dane this afternoon at 4.30 o’clock. Professor Schumpeter has written two books upon Economic. Theory which are of high quality, and have attracted a great deal of attention.

Source: The Harvard Crimson. March 16, 1914.

_____________________________

Noted Economist’s Last Lecture

All members of the University interested in economics are invited to hear Professor Josef Schumpeter, of the University of Vienna, lecture upon “Economic Theory” in Professor Taussig’s course, Economics 11, this afternoon at 2.30 o’clock. This will be the last of a series of lectures given by Professor Schumpeter, who is this year conducting courses at Columbia University. The lecture will take place in Emerson H.

Source: The Harvard Crimson. March 18, 1914.

_____________________________

Prof. Schumpeter Sails.
Says That America Made a Deep Impression on Him.

Professor Joseph Schumpeter, the first Austrian exchange professor in America, who is returning to his home University of Graz, Austria, sailed on the Martha Washington yesterday. The professor has lectured on social problems, money systems, democracy and other branches of science, has been with Columbia University until the end of January, when he left for a tour through all of the leading universities of this country, the tour extending to San Francisco. Mr. Schumpeter said that he was sorry to leave America, which had made a deep impression upon him.

“The big American universities,” the professor stated, “are far better than the average Austrian and even European university. America has a bigger and better body of scientists at each university, and the student’s material is of a much higher type than that of European schools. The American student wants to learn. He has the earnest desire to go to the bottom of science. He wants to make headway in the world, whereas the Austrian student visits a university for reasons of tradition, social standing and title.”

Asked what he thought the greatest American achievement, the professor answered that the “one-man management” was most appealing to him. It was far better, he claimed to have one man run a business, a university, and even a political party, than to have the European system of sharing power and responsibilities.

Four pretty young sisters, all of whom are ardent suffragists, left on board the big Austrian liner for Italy, France and Germany. The fair travelers are Misses Catherine, Ella S., Grace and Margaret Switzer of Manhattan. Their purpose is to show their European sisters how superfluous man really is, for never during their trip will they tolerate or accept the services of any man nor will they speak to any man or stand for being addressed by a man.

Source: The Brooklyn Daily Eagle. March 22, 1914, p.74

Image Source: Boston Evening Transcript. February 4, 1914. Colorized by Economics in the Rear-view Mirror.

Categories
Business Exam Questions Johns Hopkins

Johns Hopkins. Examination questions for undergraduate marketing. Roy J. Bullock, 1937-1938.

The mingling of business with economics in some economics departments went on well into the middle of the 20th century (the contrary movement of “economics departments” being added to business schools/colleges and schools of public policy is another, later story). Moving on through the undergraduate course offerings in the Johns Hopkins department of political economy 1937-1938, we encounter the course in marketing taught by Roy J. Bullock. The course description and semester examination questions have been dutifully transcribed and are found below.

__________________________

Life and Career of Roy Johnson Bullock

1903. Born October 5 in Crete, Nebraska.

1925. A.M. Doane College (Nebraska). Phi Beta Kappa.

1927. M.B.A. Harvard Business School.

1927-28. Associate Professor of Business Administration, University of Oregon.

1933. Ph.D. in Political Economy, Johns Hopkins.

1934-1940. Faculty member of the department of political economy.

1941. Director of Johns  Hopkins School of Business.

1942. Joined the Office of Price Administration in Washington, D.C.

1945-48. Served with the U.S. military government in Germany.

1948. Begins Congressional career as a member of the staff of the Joint Committee on Foreign Economic Cooperation.

1951. Served as economic expert for the House Foreign Affairs Committee, later promoted to senior staff consultant.

1957. Served on staff of the congressional delegation to the United States.

1970-1972. Staff administrator of the House of Representatives Committee on Foreign Affairs

1972. Retired from congressional service.

1980. Died February 14 at his winter home in Marco Island, Florida.

Source: Obituary for Roy Johnson Bullock in The Washington Post, February 18, 1980.

__________________________

Fun Poster:  The Johns Hopkins Department of Economics’ timeline 1875-2016. (Archived copy at the Wayback Machine).

__________________________

Course Description
Marketing
1937-1938

20 B. Marketing. Dr. Bullock. Three hours weekly, through the year. Th., F., S., 9.30. Gilman Hall 312.

A comprehensive study of the machinery encountered in present-day business that is utilized in the distribution of merchandise from the producer to the consumer, together with the policies governing its use. Attention is given to such subjects as retailing, wholesale trade, advertising, buying, cooperative marketing and the various types of functional middlemen, with particular regard to the place occupied by each in the general marketing structure. Detailed examination is made of the distribution of the more important commodities. A considerable amount of time is spent in the discussion of problems taken from business practice that pertain to the topics under consideration.

Source: The Johns Hopkins University Circular (1937).

__________________________

Final Examinations
Marketing
1937-1938

THE JOHNS HOPKINS UNIVERSITY
MID-YEAR EXAMINATION
POLITICAL ECONOMY 20 B

Dr. Bullock

January 31, 1938

I

Define or identify:

  1. Merchandising
  2. Economical Emulation
  3. Intensive distribution
  4. Trade-mark piracy
  5. % of selling price = % of cost
    100 – % of selling price
  6. Price-lines
  7. Stockturn
  8. Functional middleman
  9. Selling agent
  10. Hedging

II

National Hardware Stores, Inc.

In 1917, it was announced that the National Hardware Stores, Inc. had been organized under the law of the State of New York, to operate a chain of retail hardware stores. As a nucleus it planned to purchase selected unit stores in the eastern states and later to open new stores as well as to purchase other established stores throughout the country. The plan contemplated the operation of a perpetual inventory control of merchandise stocks in all the retail branches by means of an electrical tabulating machine in the central office; for each sale ticket a specially designed card was to be punched to show salesman’s number, code number of the merchandise, quantity, and selling price. Operating statements and balance sheets were to be prepared monthly for each store.

It was the policy of the company to deal in standard brands of merchandise, purchased centrally so far as practicable, but with permission to store managers to buy goods peculiar to their local requirements. Goods were to be sold at standard resale prices, without price cutting.

A sales promotion department was to be organized at the control office to furnish a regular service of direct advertising to select lists of customers of each store, to prepare newspaper and street car advertising and window displays, and to train store salesmen. As regards the owners of the stores, it was stated: “It is the policy of the corporation to buy men into its organization rather than to buy out their businesses.”

The corporation made a prolonged study of communities and stores within a 12-hour railroad radius of Now York City preliminary to the commencement of operations. Then several stores were purchased. In July, 1922, however, it was announced that receivers in bankruptcy had been appointed for the company. Its assets then were stated as $75,000 and its liabilities $100,000.

What were the inherent weaknesses in the company’s plan?

III

Waldemar Machine Company.

The chief products of the Waldemar Machine Company were automatic screw and chucking machines. The company also manufactured a line of shop equipment, including such items as steel benching, stock racks, and tool racks.

The company’s total annual sales were in excess of a million dollars; of that amount about 10% was represented by sales of shop equipment. In 1925, both the automatic machinery and the shop equipment were being sold by the same salesman. At that time it was proposed that the company should relieve the machinery salesmen of the responsibility for selling shop equipment and provide some other method of distribution for that line.

Waldemar machines were made in about 15 sizes and three types. They ranged in price from $5,000 each to $15,000 each. Firms producing large quantities of similar parts constituted the market for these machines. It was important that salesmen for the machines have engineering experience. They were expected to visit all large prospective customers several times a year but to devote, the major part of their time to firms actually in the market for machinery. The salesman obtained detailed information from such firms as to the particular jobs for which automatic machinery was required and submitted this information to the home office for production estimates and proposals. The salesman customarily negotiated with production officials and had to be able to advise them as to applications of the machines, small tools to be used with them, and other technical matters. The salesmen were paid salaries and expenses and, as an incentive, small commissions on sales in excess of specified amounts.

After a sale had been consummated and the machinery installed, the company provided a demonstrator to instruct the customer in use of the machinery. No separate charge was made to cover the cost of demonstration. The demonstration period varied from a few hours to several weeks.

The problems of selling shop equipment were totally dissimilar to those of selling automatic machines. Items of shop equipment were comparatively inexpensive and the potential market for them was much wider than that for the machines, although machinery users also were prospective customers for shop equipment. Even when the same firm bought both lines, however, different individuals usually were responsible for their purchase. The technically trained salesmen for the machines, moreover, tended to be disinterested in the equipment line.

In view of those facts the company in 1925 decided that thereafter it would not have its machinery salesmen sell the shop equipment. Its shop equipment sales, however, did not seem to be large enough to justify the employment of salesmen for that line alone. The company decided, therefore, to sell this line by means of manufacturers’ representatives specializing in a few lines of industrial equipment. Some of these representatives sold on consignment and some bought the goods outright; the company deemed it important to have local stocks. In general it was the company’s experience that sale on consignment gave the best results, since under that method of sale the company had a larger measure of control over its goods.

Criticize the decision of the company.

IV

Landon Company.

The merchandise manager of the Landon Company early in 1934 had the following operating statistics of the neckwear department presented to him by the controller’s office. For the use of the merchandise manager, the controller included with the company’s statistics the common and the goal figures of the National Retail Dry Goods Association for neckwear departments.

Item

1932

 1933

1934
Store

NRDGA

 Store

NRDGA

 Store
Common Goal Common Goal

Mark-up, %

 38.06 39.1 41.2 38.67 41.1 42.1 39.48
Mark-down, % 9.04 7.3 5.4 11.71 8.4 4.5

12.25

No. of stock-turns

 8.8 7.5 10.1 7.6 8.8 11.3 6.4
Expense, % 37.45 39.8 33.8 44.21 39.9 37.5

Sales, % of previous year

 85 86 97 75 100 113

59

What use could the merchandise manager make of this information?

*  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *

THE JOHNS HOPKINS UNIVERSITY
FINAL EXAMINATION
IN
POLITICAL ECONOMY 20 B
(Marketing)

1 p.m.
May 30, 1938

I.

Explain briefly the meaning or significance of:

  1. Process materials
  2. Push selling
  3. Pittsburgh Basing Point System
  4. Robinson-Patman Act
  5. 2%, 10 days, net 30, 60 extra
  6. Old Dearborn Distributing Co. v. Seagram-Distillers Corp.
  7. Activity standards for salesmen
  8. Hedging
  9. Period discount
  10. Centralized control

II.

Evaluate the recent legislation legalizing resale price maintenance in most of the United States from the point of view of the independent retailer, the chain store, and the manufacturer of a nationally advertised article.

III.

The following statement appeared in Sales Management September 1929, p. 425 in an article signed “A Chicago Sales Manager”:

“I may say that my company has been a leader in our industry for more than thirty years. Our goods have been nationally advertised for about half this time, and practically all of our distribution has been through wholesalers. In 1921 we experimented with direct selling to large retailers, but discontinued the practice the next year. We still sell [to] the retailer through the wholesaler, and, principally in the larger cities, this method has been satisfactory.

“During my employment by the company we have sold all of our wholesale accounts on the same price basis. We have tried to confine our goods to the best class of wholesalers, and our merchandising has suffered little from price-cutting. We have maintained our position in the industry, and have a profitable and slowly growing business.

“A representative of a large mass distributor called on our president about a week ago. For about two days he talked with the four of us collectively and individually. He proposed that we sell his chain store organization a volume of goods that represents about 12 per cent of our present output, at prices which average at least 9 per cent below our net prices to our wholesalers. There is assurance, but no guarantee, that this volume will be maintained or increased. The buyer also submitted some interesting figures to support his allegation that we would not lose any money on the additional volume.

“He justified the special discount in several ways. When we objected to it on the ground that we are making less than 3 per cent net on our output, he argued that the greater part of our overhead is already taken care of by our present volume, and that we could not justly charge this expense against the additional business. If this claim is correct, a large part of the special discount may be justified.”

Discuss.

IV.

What economic justification is there for a wholesale price differential such as was provided in the N.R.A. code for the Wholesale or Distributing Trade?

What questions of social policy are involved?

V.

What methods of sales promotion should the following companies undertake? Give consideration to the characteristics of the product and the buying habits and buying motives of consumers in reaching your conclusion.

Katches

In 1928 a Boston inventor perfected an improved device called “Katches” for attaching license plates to automobiles. Katches simplified the task of attaching license plates to automobiles, because the device was in one piece, and thus did away with the necessity for bolts and nuts and lock washers. Furthermore, Katches would not rust and could always be attached or removed by one turn of a screw driver. This new invention cost 3 cents a pair to manufacture. The inventor expected to sell them to the retail trade for 6 cents a pair, and suggested that the latter resell them for 10 cents a pair. Since most license plates were changed at the beginning of the year, he expected that the sales of this produce would be very seasonal.

Owl-Fiber Rug Company

The Owl-Fiber Rug Company manufactured rugs made of spun paper yarn, and wool and cotton yarn, for sale to department stores and wholesalers. These rugs were made in a number of attractive patterns, and gave very satisfactory service in actual use. They were mainly sold to small-home owners for inside all-year-round use. Rugs manufactured by this company competed not only with all-wool rugs and oiled-surface floor coverings such as Congoleum, which were more expensive than fiber rugs, but also with other wants of users, such as furniture and electrical appliances. The manufacturers of oiled-surface coverings had advertised their products very extensively, one company having spent more than $1,000,000 in a five-year period. The Owl-Fiber Rug Company, on the other hand, had done little advertising.

Claybon Company

The Claybon Company was one of four large manufacturers of cheesecloth. Cheesecloth was mainly used for polishing, dusting, and straining cloths, as well as for surgical work and for making curtains and nettings. There were 13 principal grades of cheesecloth, the retail prices of which varied, when sold as piece goods, from 7 cents a yard for the coarser grades to 20 cents a yard for the finer grades. In addition to what was sold as piece goods a considerable amount of cheesecloth was sold in packages. Packaged cheesecloth was sold in five standard grades in 5 and 10 yard lengths. Companies charged 1 cent a yard more for packaged cheesecloth than for roll cheesecloth to cover the extra charges of packaging.

Source: Johns Hopkins University, Eisenhower Library. Ferdinand Hamburger, Jr. Archives. Department of Political Economy. Curricular Materials. Series 6. Box 2. Folder “Department of Political Economy — Exams, 1936-1940”.

Image Source: Johns Hopkins University graphic and pictorial collection. Portrait of Roy Johnson Bullock, 1940. Colorized by Economics in the Rear-view Mirror.

Categories
Exam Questions Finance Johns Hopkins Statistics Undergraduate

Johns Hopkins. Exam questions for mathematics of finance and applied statistics. Evans, 1937-1938

 

For an earlier post Economics in the Rear-view Mirror transcribed the examination questions for George Heberton Evans’ course on corporation finance offered to Johns Hopkins undergraduates in 1937-1938. That course and the following course on the mathematics of finance and applied statistics were not listed as prerequisites for each other. The essential difference appears to be that the following course appears to have covered themes of interest to actuaries (no pun intended). 

For some background information about Evans, see: Ph.D. from Johns Hopkins University, 1925. 

__________________________

Course Description
Mathematics of Finance and Applied Statistics
1937-1938

24 B. Mathematics of Finance and Applied Statistics. Associate Professor Evans. Three hours weekly through the year. F., S., 11.30. Gilman Hall 314.

The first half-year of the course will include the study of annuities, sinking funds, amortization tables, and valuation of bonds.

During the second half-year mathematics and statistical method will be applied to business and economic problems.

Prerequisites: Mathematics 1 C or 2 C and Political Economy 2 C.

Source: The Johns Hopkins University Circular (1937).

__________________________

Semester Examinations for
Mathematics of Finance and Applied Statistics
1937-1938

THE JOHNS HOPKINS UNIVERSITY
MID-YEAR EXAMINATION
POLITICAL ECONOMY 24 B

Dr. Evans

February 4, 1938
1 p.m.

  1. A bond will be redeemed in 10 years for $1,000 cash. Semi-annually the owner of the bond receives $30 interest. Determine the present value of the bond if the current rate on similar investments is 5%.
  2. Find the bank discount on a $10,000 note for 6 months when the bank rate is 7%. What is the effective rate of interest charged!
  3. The XYZ Corporation has outstanding a bond issue of $10,000. It has agreed to pay to a trustee an amount at the end of each year, which invested at 4% will provide a fund to retire these bonds at the end of 10 years. Determine the amount that must be invested each year.
  4. Williams owes $7,500 due in 8 years, and $4,500 due in 5 years, each bearing 4% interest. What two equal payments will liquidate this debt, if the first is made in 1 year, and the second in 3 years? The current rate is 5%.
  5. Repairs costing $350 must be made each 2 years to a building which will last 20 years. Determine the amount that could be spent to eliminate these repairs without additional cost to the owner over the period. Interest at 4%.
  6. An estate left 110 years ago was unclaimed until recently. An heir has proved his claim and is to receive the estate of $50,000 with interest at 3% annually for 110 years. Determine the value of the estate.
  7. X has an obligation of $25,000 which he desires to liquidate by investing $3,500 now and the same sum annually thereafter, at 4½% compounded semi-annually. Determine when the fund should theoretically be large enough to liquidate the debt.
  8. Find the ordinary interest of $450 for 60 days at 8%.
  9. An insurance company agrees to pay you or your estate $2,000 a year for 15 years if you will pay them $23,875.87 cash. The salesman argues that you will get your money back and make a profit of $6,124.13. Determine the rate of interest that you will actually receive.
  10. In order to attract customers the Pacific Savings Bank advertises that it pays 3% compounded monthly. If you deposit $25 a month for 6 years what is the amount you will have accumulated at the end of 6 years?
  11. In how many years will money invested at compound interest double itself at 3%?
  12. In 10 years the bond issue of the Chemico Company will mature. An amount of $30,000 will be needed to retire this issue. The treasurer estimates that $2,300 a year will be available for investment. What rate of interest must be earned to accumulate a fund of $30,000 in 10 years? In answering, make use of the binomial theorem.

*  *  *  *  *  *  *  *  *  *  *  *  *

THE JOHNS HOPKINS UNIVERSITY
FINAL EXAMINATION
POLITICAL ECONOMY 24 B

June 4, 1938

  1. A bequest of $150,000 was left to A, aged 36. With what life annuity will this provide him?
  2. A, aged 40, gave $75,000 to Blank University with the understanding that after 15 years he receive an equivalent life annuity. What annual amount would he receive?
  3. A party of five men at a soda fountain match coins, agreeing that the odd man is to pay for the drinks: (a) What is the probability that there will be one odd man at the first attempt? (b) What is the probability that there will be no odd man at the first attempt, but that there will be one on the second? (c) What is the probability that there be an odd man at least once in two attempts?
  4. What is the earliest age at which the “odds are against” a man living:
    (a) one year?
    (b) five years?
  5. Using the theoretical method, calculate the purchase price of the following $1000 bond which was bought on May 4, 1928 to yield 4.40%: New England Tel. & Tel. 5’s, due Oct. 1, 1932, with coupon dates of Apr. 1 and Oct. 1.
  6. Dwight Minor paid, at the end of each month, dues of $23.25 on his 31 shares of $100 par value stock in the Garfield Loan and Savings Association. Immediately after his 99th payment the stock matured. What approximate rate, converted monthly, did his association allow him?
  7. B, aged 36, took out a 20-year endowment insurance policy for $50,000 to be paid for in 20 payments. On what net annual premium did the insurance company base its charge?

Source: Johns Hopkins University, Eisenhower Library. Ferdinand Hamburger, Jr. Archives. Department of Political Economy. Curricular Materials. Series 6. Box 2. Folder “Department of Political Economy — Exams, 1936-1940”.

Image Source: Johns Hopkins University, Sheridan Libraries, Graphic and Pictorial Collection. George Heberton Evans at approximately 40 years old. The portrait was colorized by Economics in the Rear-view Mirror.

Categories
Economic History Exam Questions Johns Hopkins Undergraduate

Johns Hopkins. Exam questions for undergraduate economic history. Broadus Mitchell, 1937-1938

 

Associate Professor Broadus Mitchell taught the standard undergraduate survey course in economic history at Johns Hopkins in 1937-1938. He resigned from Johns Hopkins the following year over the matter of admitting an African American student to the department of political economy (the admission was fought by the Johns Hopkins University administration).

Much more about Mitchell can be found in the 90 page transcript of an oral history interview with him from August 14 and 15, 1977 that can be found in the Southern Oral History Program Collection at the website Documenting the American South at the University of North Carolina at Chapel Hill.

It is the regret of my life that at Johns Hopkins University I did not pursue to the bitter end the defense of the proposal to admit a qualified Negro graduate student in the Department of Political Economy. He was Edward S. Lewis, who was the Secretary of the Urban League, of which I had been the first President in Baltimore. He was a graduate, I believe, of the University of Chicago and maybe of the Columbia University School of Social Work; I’ve forgotten. At any rate he was in every way a highly qualified, mature applicant for admission to graduate work. He was a leading black social worker in Maryland, where there’s a large negro population with a much higher incidence of poverty, disease, and so on than the whites. And he had been doing graduate work in economics at the University of Pennsylvania, commuting weekends. He could only get weekends, because he was holding his position as Secretary of the Urban League in Baltimore. And this was unsatisfactory and costly and interrupted and so on, so why shouldn’t he come to Johns Hopkins where we had every facility? … pp. 76-77.

__________________________

Course Description
Economic History
1937-1938

12 B. Economic History. Associate Professor Mitchell. Three hours weekly through the year. M., Tu., W., 9.30. Gilman Hall 314.

In the first part of this course a study is made of English economic history, the purpose being to show not only the industrial development of the English people as such but the way in which the economic motive has influence the whole of social life. Particular attention is given to the characteristic forms of economic organization—the manorial system, the guild system, the entrance of capitalism and the causes and consequences of the Industrial Revolution. Special reference is made to those features of English economic history which have influenced industrial life in the United States. The second part of the course is a survey of the economic history of our own country. Here the same effort is made, as in the case of England, to show the bearing of economic considerations on political evolution, especially in the direction of the growing importance of the Federal Government.

__________________________

Semester Examinations
Economic History
1937-1938

THE JOHNS HOPKINS UNIVERSITY
MID-YEAR EXAMINATION
POLITICAL ECONOMY 12 B

Dr. Mitchell

February 1, 1938
9 a.m.

  1. Contrast life in an English manorial village of the 13th century with agricultural life in the United States today.
  2. What were the main causes and consequences of the enclosures movement?
  3. Contrast the conduct of industry and commerce in the towns of England in the Middle Ages with industrial and commercial life in the United States today.
  4. Trace the transition from the guild system through the domestic system to capitalism.
  5. Describe the Industrial Revolution.
  6. Give a brief account of two of the following movements: labor unionism, the factory acts movement, Chartism, socialism, consumers’ co-operation.
  7. What is meant by the economic interpretation of history?
  8. What is the status of the laissez faire theory in the United States today?
  9. Make an argument that mankind would be better off if the inventors of the 18th century never lived.

*  *  *  *  *  *  *  *  *  *  *  *  *

THE JOHNS HOPKINS UNIVERSITY
FINAL EXAMINATION
IN
POLITICAL ECONOMY 12 B

Dr. Mitchell

May 31, 1938
9 a.m.

  1. What was the economic position of the country at the time the Constitution was formed?
  2. Discuss the “American System”
  3. Give an outline of banking from 1791 to the adoption of the Federal Reserve Act.
  4. Contrast economic conditions in North and South on the eve of the Civil War.
  5. Tell what you can of the growth of large-scale business enterprise and its economic and legislative consequences.
  6. Discuss the protective tariff in America.
  7. Identify briefly: Mathew Carey, Friedrich List, Salmon P. Chase, Nicholas Biddle, James B. Duke, Samuel Slator.
  8. Tell what you know of governmental intervention in economic life during the depression which began in 1929.

Source: Johns Hopkins University, Eisenhower Library. Ferdinand Hamburger, Jr. Archives. Department of Political Economy. Curricular Materials. Series 6. Box 2. Folder “Department of Political Economy — Exams, 1936-1940”.

Image Source:  Broadus Mitchell in his office, ca. 1938. From the Johns Hopkins university graphic and pictorial collection. Colorized by Economics in the Rear-view Mirror.

Categories
Exam Questions Johns Hopkins Undergraduate

Johns Hopkins. Exam questions for undergraduate principles of accounting. Cooper, 1937-1938

In the newspaper account of Howard Earl Cooper’s retirement, the Dean of the Johns Hopkins University Evening College, called him “certainly the Mr. Chips” of the cohort retiring in 1969, i.e. a professor who was loved more by his students than he apparently loved doing research. But he was apparently very much loved by his students and we all know just how fickle the reception of our own research can be. One presumes he left with overwhelming fond professional memories.

But we are here to capture the reality of economics education through the years and Cooper’s exam questions from 1937-38 provide us another archival observation.

__________________________

Howard Earl Cooper
Chronology of his life and career

1899. October 17. Born in Canon City, Colorado.

Served in an Army intelligence unit in World War I.

1922-26, 1927-28. Registrar, School of Commerce, Accounts and Finance at the University of Denver.

1923. B.C.S. from the University of Denver

1925. S.B. from the University of Denver.

1927. S.M. in banking from Columbia University.

1927-28. Assistant Professor of Accounting at the University of Denver.

1928. Appointed instructor of accounting at Johns Hopkins University.

1932. Ph.D. in Political Economy from Johns Hopkins. Dissertation: The Application of Standard Costs to Factory Overhead Expenses.

1942. Appointed associate professor of accounting.

1946. Appointed professor of accounting.

1951-1969. Associate Dean of McCoy College (earlier called the Hopkins Evening College and later called the School of Continuing Studies) of Johns Hopkins University.

1985. October 9. Died in Baltimore, Maryland.

Sources:

  • Annual Report of the President for 1931-32, p. 246. Johns Hopkins University Circular (September 1932).
  • Retirement announced in The Baltimore Sun, May 24, 1969, p. 10.
  • Obituary in The Baltimore Sun, November 3, 1985, p. 38.

__________________________

Howard E. Cooper Jr. Memorial Scholarship

Mary Cooper Evans established this fund in 1985 in honor of Dr. Howard E. Cooper Jr., professor emeritus and former associate dean of McCoy College, who taught at Johns Hopkins from 1928 until his retirement in 1964. This fund supports students majoring in business.

__________________________

Course Description
Principles of Accounting
1937-1938

11 B. Principles of Accounting. Dr. Cooper. Three hours weekly, through the year. M., T., F., 2 p.m. Gilman Hall 312.

A study is made of financial statements as the goals of accounting endeavor, of the analysis and recording of business facts in the accounting books and records, and of the methods of opening and closing the books for a single proprietorship, partnership and corporation as well as the use of controlling accounts, and consignment accounts. Many practical problems are assigned to give facility in the handling of accounting records and a ready appreciation of their significance.

Prerequisite: Political Economy 1 C.

__________________________

Semester Examinations
Principles of Accounting
1937-1938

THE JOHNS HOPKINS UNIVERSITY
MID-YEAR EXAMINATION
POLITICAL ECONOMY 11 B

Dr. Cooper

February 2, 1938

Please write your answers to these questions legibly and in ink.

  1. (a) What is the purpose of classifying the items in a Balance Sheet?
    (b) What is the purpose of classifying the items in a Profit and Loss Statement?
    (10 points)
  2. (a) What is a trial balance?
    (b) What function does a trial balance serve?
    (10 points)
  3. Set up a schedule of debit and credit showing what kinds of items are to be debited and credited.
    (10 points)
  4. (a) What is the purpose of subdividing the journal?
    (b) What is the purpose of subdividing the ledger?
    (10 points)
  5. (a) What is a controlling account?
    (b) How would you account for the withdrawal of stock in trade by the proprietor in a set of books which had a sales and purchase journal and general journal and a subsidiary accounts receivable ledger?
    (10 points)
  6. From the following information prepare a worksheet.
Advertising $ 6,000 Miscellaneous Selling Expense $ 1,700
Accounts Payable 20,000 Notes Payable 25,000
Accounts Receivable 28,000 Motes Receivable 12,000
Bonds (Investments) 2,000 Purchases 128,000
Buildings 24,000 Purchase Discounts 2,400
Cash 14,000 Reserve for Bad Debts 700
Delivery Equipment 1,900 Returned Pur. and Allowances 4,000
Freight In 1,000 Returned Sales and Allow. 1,600
Furniture and Fixtures 5,800 L. A. Roberts, Capital 68,940
General Expense 5,600 L. A, Roberts, Per. (debit) 8,000
General Salaries 4,000 Sales 178,350
Insurance Expense 1,200 Salesmen’s Salaries 11,000
Interest Expense 1,000 Sales Discounts 680
Land 12,000 Store Equipment 3,000
Merchandise Inventory 24,000 Taxes 2,910
Depreciation on Buildings 5%.
Depreciation on Del. Equip. $720.
Depreciation on Furniture and Fixtures $800.
Depreciation on Store Equipment $400.
Bad Debts $1,760.
Prepaid Advertising $2,000.
Prepaid Insurance $200.
Accrued General Salaries $100.
Interest Accrued on Notes Payable $700.
Accrued Salesmen’s Salaries $350.
Accrued Taxes $300.
Deferred Income-Liability for Gift Certificates $750.
Accrued Interest on Bonds $60.
Accrued Interest on Notes Receivable $300.
Final Inventory $21,000

(50 points)

*  *  *  *  *  *  *  *  *  *  *  *  *

THE JOHNS HOPKINS UNIVERSITY
FINAL EXAMINATION
POLITICAL ECONOMY 11 B

June 2, 1938
1 p.m.

Please use ink and write clearly.

  1. Pic and Pat are partners with capital accounts of $15,000 and $20,000 respectively. Business has not been good. Their assets are converted into $30,000 cash. There are liabilities of $8,000. Set up T accounts and show how the business should be dissolved.
  2. Bergen and McCarthy were engaged in a partnership with capital investments of $10,000 and $20,000 respectively. They decide to admit Lamour into the partnership for a one third interest for an investment of $20,000 in the partnership. Set up T accounts illustrating the admission of the new partner.
  3. Benny and Allen are partners with investments of $10,000 and $25,000 respectively. Their profit and loss sharing ratio is 2 and 3 respectively. Benny is to be allowed a salary of $3,000. Allen receives no salary. Each are to be allowed interest of 6% on their investments. The profits for the year are $4,500. How should they be distributed.
  4. The Baker Corporation is organized under the laws of the State of Maryland with an authorized Capital stock of 10,000 shares with a per value of $100 each. On April 1, 1938 the stock was sold at 90. On April 15, 10% of the stock was donated back to the company and on the 20th was resold for 80. Journalize the above data.
  5. On January 1, 1937 the Vallee Corporation issues $500,000 worth of 5% bonds at 95. Coupons payable on June 30 and December 31. These bonds have ten years to run. Show journal entries for:
    (a) Issuing the bonds
    (b) Payment of interest on June 30 and December 31.
    (c) Ammortizing the discount as of December 31 on a straight line basis.
  6. Set up a cost of goods sold section of a profit and loss statement of a manufacturing company supported by a schedule of the cost to manufacture using your own figures.
  7. What are the advantages and disadvantages in the use of a voucher system?
  8. How would you calculate an open to buy estimate? Illustrate.
  9. Illustrate two methods of accounting for consignments out.
  10. Illustrate the accounting for neglected purchase discounts.

Source: Johns Hopkins University, Eisenhower Library. Ferdinand Hamburger, Jr. Archives. Department of Political Economy. Curricular Materials. Series 6. Box 2. Folder “Department of Political Economy — Exams, 1936-1940”.

Image Source: Portrait of Howard Earl Cooper in the 1940 Johns Hopkins’ yearbook Hullabaloo, p. 9. Colorized by Economics in the Rear-view Mirror.

Categories
Exam Questions Finance Johns Hopkins

Johns Hopkins. Final examinations for Corporation Finance and Investments. Evans, 1937-1938

 

Associate Professor George Heberton Evans, Jr. taught the undergraduate course in corporation finance and investments at Johns Hopkins in the 1937-1938 academic year. Economics in the Rear-view Mirror has already posted some background information about him: Ph.D. from Johns Hopkins University, 1925. 

__________________________

 Course Description

6 B. Corporation Finance and Investments. Associate Professor Evans. Three hours weekly, through the year. Th., F., S., 10.30. Gilman Hall 314.

In the first part of this course the theory and practice of corporation finance will be considered with particular reference to the problems presented in the United States. The more important topics taken up include: advantages and disadvantages of corporate organization; classification and examination of the characteristics of stocks and bonds; the choice of different types of securities to be issued; methods by which these securities are floated; the methods and forms of syndicate underwriting; policy with reference to dividends and surplus; refunding of debt and provisions for amortization; receivership and reorganization.

The second part of the course will be devoted to the study of investments. The more important topics covered include: an analysis of the essentials of a good investment; an historical study of the rate of interest and of periodic fluctuations in the rate; definition of the essential legal characteristics of the various debt instruments and especially of the mortgage; historical and analytical description of the more important forms of investment, such as Government, State and municipal bonds, securities of private corporations, and real estate mortgages; theories of valuation and amortization.

Prerequisites: Political Economy 1 C, 2 C and 11 B.

__________________________

Course Examinations

THE JOHNS HOPKINS UNIVERSITY
MID-YEAR EXAMINATION
POLITICAL ECONOMY 6 B

Dr. Evans

February 4, 1938
9 a.m.

  1. Discuss the risks peculiar to the ownership of holding company securities.
  2. Discuss the trust as a method for effecting combination.
  3. What is the law of balanced return and how is it employed in corporation finance?
  4. What factors determine how much of a corporation’s earnings should be distributed to the stockholders?
  5. List the factors which are to be considered when drawing up a financial plan. Comment at some length upon two of the factors which you have listed.
  6. What is meant by trading on the equity? What principles may be set forth concerning trading on the equity?
  7. What is the chief advantage of the corporate form of enterprise?
*  *  *  *  *  *  *  *  *  *  *  *  *  *
THE JOHNS HOPKINS UNIVERSITY
FINAL EXAMINATION
IN
POLITICAL ECONOMY 6 B

Dr. Evans

May 31, 1938
1 p.m.

  1. What advantages arise out of timing bond investments? Answer in terms of the concepts employed in the course.
  2. When can an investor afford to overlook the possibility that a loan will not be paid at maturity? Discuss fully.
  3. What has been the relationship between the changes in the prices of goods and capital? How do you explain the relationship?
  4. When are the market forecasts of the probabilities with respect to the payment of principal and interest of bonds more likely to be consistent with the results?
  5. Discuss the investment trust or company as an investment mechanism.
  6. What seems to you to be the prospect with respect to the rate of interest? Give the bases for your opinion.

Source: Johns Hopkins University, Eisenhower Library. Ferdinand Hamburger, Jr. Archives. Department of Political Economy. Curricular Materials. Series 6. Box 2. Folder “Department of Political Economy — Exams, 1936-1940”.

Image Source: Johns Hopkins University, Sheridan Libraries, Graphic and Pictorial Collection. George Heberton Evans at approximately 40 years old. The portrait was colorized by Economics in the Rear-view Mirror.

Categories
Exam Questions Johns Hopkins Money and Banking

Johns Hopkins. Final exams for undergraduate money and banking. Weyforth, 1937-1938

 

Brief biographical information William Oswald Weyforth can be found in the earlier post that has includes the 1930-31 exam questions in money and banking.

__________________________

Course Description
for Money and Banking
1937-1938

3 B. Money and Banking. Associate Professor Weyforth. Three hours weekly through the year. M., Tu., W., 9.30. Gilman Hall 311.

In this course an analysis of the functions of money, credit and banking in our modern economic life will be made. There will be a description of various types of monetary systems, of the forms of credit and of banking and financial institutions. Particular attention will be given to the relationship between money, bank credit and prices; to the effects of price fluctuations upon individuals and upon general business conditions; to the problems of stabilizing prices and controlling business fluctuations by means of a deliberately directed monetary and credit policy. The Federal Reserve System will be studied with special emphasis upon its problem of credit control. Some time will also be devoted to the relationship between the money market and the stock market, to the problem of brokers’ loans, and to financial operations involved in our international trade.

Prerequisite: Political Economy 1 C.

Source: The Johns Hopkins University Circular (1937).

__________________________

Semester Examinations for Money and Banking
1937-1938

THE JOHNS HOPKINS UNIVERSITY
MID-YEAR EXAMINATION
POLITICAL ECONOMY 3 B
(Money & Banking)

February 1, 1938

  1. What are the essential features of a gold standard? Distinguish between a gold specie and a gold bullion standard. Is the United States on a gold standard at the present time? Give the reasons for your answer.
  2. What is bimetallism? What were the forces responsible for the demand for bimetallism after 1873. Criticize the recent silver policy of the United States government.
  3. Distinguish the international “balance of trade” and the “balance of payments” of any country. What are the more important types of transactions that enter into the balance of payments? Explain the forces through which equilibrium in the international balance of payments of a country is maintained under an international gold standard.
  4. When two countries are both on a gold standard why do market rates of exchange between the two currencies remain close to the mint par of exchange? Explain fully the circumstances under which bankers will undertake shipments of gold.
  5. Explain the relation between the quantity of money and the general level of prices. Will an increase in the quantity of money always result in an increase in the general level of prices? Explain fully.
  6. Explain the type of financing under which large government expenditures might lead to inflation. How might such expenditures be financed without bringing inflation?
  7. Explain the relationship between the purchasing power and the exchange rates of two currencies. Is the equilibrium rate between two paper currencies necessarily the purchasing power parity? Explain.
  8. Distinguish between a bill of exchange and a promissory note. Explain the significance of negotiability.
  9. Show how demand deposits in banks serve as money. Explain how banks create deposits. How is the power of banks limited in this respect? Explain the difference between the power of the banking system as a whole and that of a single bank that is one among a number in the system.
  10. What is meant when it is said that the pound sterling was overvalued when England returned to the gold standard in 1925; and that the franc was undervalued when France returned to gold in 1928? What are the economic effects of a country’s overvaluation or undervaluation of its gold currency?

*  *  *  *  *  *  *  *  *  *  *  *  *  *

THE JOHNS HOPKINS UNIVERSITY
FINAL EXAMINATION
IN
POLITICAL ECONOMY 3 B

Dr. Weyforth

May 31, 1938
9 a.m.

  1. What factors have been responsible for the decline of commercial loans in the United States since the end of the world war? What is the nature of the problem that this development has presented to commercial banks?
  2. In what way has speculation in securities been financed by commercial banks? Explain fully. What specific powers have been conferred upon the Federal Reserve Board by the Banking Act of 1933, and by the Securities and Exchange Act of 1934 so as to give the Board greater control over speculation in securities?
  3. What factors have been responsible for the large excess reserves of member banks during the depression? Why have these excess reserves not led to a commensurate expansion of loans and investments?
  4. What justification is there for saying that we have a managed currency in the United States at the present time?
  5. What methods may be employed by the Federal reserve system at the present time for the purpose of credit control? Distinguish between quantitative control and qualitative control.
  6. In determining its policy of credit control what consideration should be given by the Federal Reserve officials to the following factors: (a) the state of the gold (gold certificate) reserves of the Federal reserve banks; (b) the general level of commodity prices; (c) the movement of security prices; (d) the volume of employment?
  7. What are the limits of the effectiveness of easy credit conditions as a means of stimulating business activity during a depression? How effective do you believe that government spending may be for this purpose? Explain fully.
  8. State the arguments pro and con for branch banking in the United States.
  9. What is meant by sterilized gold in the United States Treasury? What was the mechanism by means of which this sterilization was accomplished.

Source: Johns Hopkins University, Eisenhower Library. Ferdinand Hamburger, Jr. Archives. Department of Political Economy. Curricular Materials. Series 6. Box 2. Folder “Department of Political Economy — Exams, 1936-1940”.

Image Source: William Oswald Weyforth (ca. 50 years of age). Johns Hopkins University graphic and pictorial collection, Sheridan Libraries. Colorized by Economics in the Rear-view Mirror.

Categories
Exam Questions Johns Hopkins Statistics

Johns Hopkins. Semester exams for statistics. Robert G. Deupree, 1937-1938

 

Following a brief chronology of the life and career of the Johns Hopkins political economy Ph.D. alumnus (1937) and lecturer on statistics in the department of political economy in 1937-38, Robert Gaston Deupree, this post contains the exam questions from his year-long undergraduate course in statistics.

Fun Fact.  His son, Robert Gaston Deupree, Jr. (b. 5 August 1946)  is a distinguished astrophysicist.

__________________________

Robert Gaston Deupree

1914. January 12. Born in Indianapolis, Indiana to Clarence Cecil and Edith (Gaston) Deupree. Father’s occupation “Banker” according to birth certificate.

1930. Graduated from Shortridge High School (Indianapolis).

1934. A.B. from Franklin College (Indiana).

1935. Employed in the Washington office of the National League of Wholesale Fresh Fruit and Vegetable Distributors.

1935. September 7. Married college sweetheart, Mildred Avery of Martinsville, Indiana in Washington, D.C.

1937. Ph.D. awarded by Johns Hopkins University. Dissertation: The wholesale marketing of fruits and vegetables in Baltimore (Johns Hopkins Studies in History and Political Science, Ser. LVII, No. 2).

1940. Employed by Baylor University (Waco-McLennan Texas) according to Selective Service Registration Card. Address in Silver Spring, Maryland.According to 1942 AEA list of members, associate professor.

1942. According to AEA list of members. Office of Price Administration, Chemical Branch.

1947. Joined the faculty of the University of Tennessee. Professor of statistics.

1963. Died November 12 after a brief illness at age 49 in Knoxville, Tennessee. At the time of his death he was the head of the University of Tennessee’s Department of General Business, College of Business Administration.

Sources:

  • “Franklin Graduates Wed,” The Indianapolis Star (14 September 1935, p. 5).
  • American Economic Association. 1942 List of Members.
  • “R.G. Deupree, Doctor, Dies,” The Indianapolis Star (14 November 1963, p. 33).
  • State of Tennessee, Department of Public Health. Certificate of Death for Robert Gaston Deupree, Sr.

__________________________

Course Description
Statistics, 1937-1938

2 C. Statistics. Mr. Deupree. Three hours weekly through the year. M., Tu., W., 10.30. Gilman Hall 314.

The first half of the course will include a brief history of statistics as a science, a discussion of the collection and presentation of statistical data, and a study of some simple tools of analysis.

During the second half-year various index numbers, such as those measuring the changes in wholesale prices, retail prices, cost of living, wages and production will be studied. Special attention will be given to the business cycle and the various statistical aids that have been developed for forecasting business conditions.

In order that the student may more clearly understand statistical methods, practical exercises are assigned to supplement the class-room discussions. This work will enable the student to become familiar with the principal sources of statistical information concerning economic and business problems.

Prerequisite: Mathematics 1 C or 2 C.

__________________________

End of semester examinations
Statistics, 1937-1938

THE JOHNS HOPKINS UNIVERSITY
MID-YEAR EXAMINATION
POLITICAL ECONOMY 2 C

Dr. Deupree

January 31, 1938

  1. Why should students of the social sciences possess a knowledge of statistical method?
  2. Name four men who contributed to the early development of Statistics and explain briefly how each contributed?
  3. Outline the manner in which you would set about collecting data regarding the retail prices of coffee in Baltimore as of a particular day, for example, February 1, 1938.
  4. (a) From the following information construct two decks of a ratio chart:

Log

 1=0
Log

1.25= .096910

Log

 1.75 = .243038
Log

2 = .301030

Log

3 = .477121

(b) Construct the supplementary scales to be used with this ratio chart. Explain how they are used.
(c) Plot on the chart:

1900

 2.5
1905

4

1910

 9
1915

45
  1. (a) What are crude ratios? Why do they need to be refined?
    (b) From the following figures calculate the crude labor turnover rate of each factory. Then using Factory A as standard, refine the labor turnover rate of Factory B for the 2 factors, color and age.

No. of workers

No. leaving employment
Factory A
Total

1,000

100
White 20-40

400

40
White 40+

300

9
Black 20-40

200

40
Black 40+

100

11
Factory B
Total

2,000

150
White 20-40

1,000

60
White 40+

700

42
Black 20-40

200

38
Black 40+

100

10

What do your results indicate?

  1. Define an average. With very simple illustrations show how the arithmetic mean, median, and mode conform to your definition.

*  *  *  *  *  *  *  *  *  *  *  *

THE JOHNS HOPKINS UNIVERSITY
FINAL EXAMINATION
IN
POLITICAL ECONOMY 2 C

Dr. Deupree

May 30, 1938
9 a.m.

  1. Make a detailed outline for a chapter on Index Numbers for a statistics textbook.
  2. Compare the process of analyzing a static series with that of analyzing a time series.
  3. Define and indicate briefly the statistical uses of:
    1. Non-linear correlation
    2. Coefficient of skewness
    3. Deciles and Percentiles
    4. Symmetrical distribution
    5. Standard error of estimate
    6. Average deviation
    7. Probable error
    8. Net regression coefficients
    9. Multiple correlation
    10. Partial correlation
  4. Correlate the following data by simple linear correlation:

X

 Y

2

 1
2

2

3

 3
4

4
4

5

a. Construct a scatter diagram.
b. Find the predicting equation;
c. Calculate “r”.
d. Interpret your results.

Source: Johns Hopkins University, Eisenhower Library. Ferdinand Hamburger, Jr. Archives. Department of Political Economy. Curricular Materials. Series 6. Box 2. Folder “Department of Political Economy — Exams, 1936-1940”.

Image Source: Franklin College 1933 Yearbook portrait of Robert G. Deupree, colorized by Economics in the Rear-view Mirror.

Categories
Exam Questions Johns Hopkins Principles Undergraduate

Johns Hopkins. Exams for the five sections of principles of economics, 1937-1938

 

This post is the first of transcribed mid-year and end-year course examinations in political economy at Johns Hopkins University for the academic year 1937-1938. Principles of economics was taught in five sections: three for the College of Arts and Sciences, one for the School of Business Economics and one for the School of Engineering.

Related earlier material from Johns Hopkins:

Exams 1921-22;  Exams 1923-24; Exams 1932-33. 

A report of activities of the department of political economy for 1935-1936 has also been transcribed and posted earlier.

Blog News

Today’s post is the first content getting a toot at Economics in the Rear-view Mirror’s new outpost at Mastodon.

Twitter and Facebook outposts will continue announcing new content as well as occasional retweets, toots, shared-links and other such social stuff. Different strokes and all that jazz, but so far no requests for music or dance videos.

__________________________

Course Description

1 C. Elements of Economics. Three hours weekly through the year. Section 1: Dr. Bullock, Th., F., S., 8.30. Maryland Hall 110. Section 2: Associate Professor Mitchell, M., Tu., W., 8.30. Maryland Hall 110. Section 3: Associate Professor Weyforth, M. Tu., W., 11.30. Gilman Hall 314. Section 4: Dr. Cooper, M., Tu., W., 10.30. Gilman Hall 311. Section 5: Mr. Deupree, M., Tu., W., 8.30. Gilman Hall 314.

Note: Students in the School of Engineering will be assigned to Section 1; students in the School of Business Economics to Section 3; and students in the College of Arts and Sciences to Sections 2, 4, and 5.

This course teaches the elements of the science, aiming to show the principles upon which economic society is organized and operated. Particular attention is given to the theory of value and the theory of distribution together with their application to leading economic problems. Such subjects as Money and Banking, Rent, Wages, Interest, Profits, Industrial Combinations, International Trade, are treated in the course. It is part of the purpose of the course to indicate the application of scientific principles to current economic problems.

Required of all students before graduation.

Source: The Johns Hopkins University Circular (1937). Vol. LVI, No. 486 (April, p. 61).

__________________________

Elements of Economics
Mid-year and End-year Examinations
1937-1938

Elements of Economics. Section 1
Dr. Roy J. Bullock

THE JOHNS HOPKINS UNIVERSITY
MID-YEAR EXAMINATION
POLITICAL ECONOMY 1 C

Dr. Bullock

Wednesday
February 2, 1938, 9 a.m.

I.

Define or identify:

1. Property
2. Utility
3. Laissez-faire
4. Intensive margin of cultivation
5. Cumulative preferred stock
6. Time preference
7. Craft gild
8. Marginal revenue
9. Vertical combination
10. Demand

II.

What would be the difference between monopoly and competitive price under the following conditions:

    1. Elastic demand and increasing costs
    2. Elastic demand and rapidly decreasing costs
    3. Inelastic demand and increasing costs
    4. Inelastic demand and decreasing costs?

Illustrate each with a diagram.

III.

President Roosevelt has proposed a revision of the Federal Anti-Trust Laws. What reasons are there for being dissatisfied with our existing anti-trust laws? Are there any reasons for changing the objectives that have guided our anti-trust policy in the past? In what respects is the trust problem a price problem? Discuss.

IV.

Assume the following data with regard to a grain farm for the years 1930 and 1936:

1930 1936
Number of bushels produced 5,000 7,000
Total expenses of production $4,500 $8,000
Price of grain per bushel $.90 $1.30
Rate of return expected on farm investments 5% 4%
    1. What was the economic rent of this farm in 1930? in 1936? As a tenant what rent could you have afforded to pay in each year?
    2. Does the rent paid by the former have any effect on the price of grain at the primary market? Explain.
    3. As a buyer of land how much would you have been willing to pay for this farm in 1930? in 1936? Why?
    4. If grain alcohol became a commercial success as a substitute for gasoline, what would be the probable effect on the economic rent of this farm?

V.

Compare the advantages and disadvantages of the individual proprietorship, the corporation and the partnership from the point of view of the organizer of a business. Why has the corporation gained in relative importance during recent years?

THE JOHNS HOPKINS UNIVERSITY
FINAL EXAMINATION
POLITICAL ECONOMY 1 C

Dr. Bullock

Friday, June 3, 1938 – 9 a.m.

I

Explain briefly the meaning or significance of:

1. Legal tender
2. Favorable balance of trade
3. Interstate Commerce Act of 1887
4. American Federation of Labor
5. Fiat money
6. Stoppage at the source
7. Elastic currency
8. Committee for Industrial Organization
9. Taxation according to benefit
10. Workmen’s compensation law.

II

(a) Explain clearly how commercial banks are able to make loans greatly in excess of their cash resources.

(b) Explain the difference between the equation of exchange and the quantity theory of money.

III

A popular slogan of recent years has been, “More business in government, less government in business.” Developments have been in the opposite direction to that advocated. Have these developments been the result of party politics or are they in accord with underlying economic tendencies? Evaluate the slogan in the light of current conditions.

IV

Appraise national legislation to stablish a minimum weekly wage and a maximum number of hours work per week with regard to its probable effect on laborers income and on the business cycle.

V

(a) “The restoration of the pound sterling to its pre-war value was equivalent to the imposition of a heavy tax upon the British exporting industries.” Explain. Did the increase in the value of the pound make it easier or more difficult for other countries on the gold standard to sell in the British market? Explain.

(b) Explain and illustrate the difference between a tariff schedule designed as a revenue measure and a schedule aimed primarily at protection.

*  *  *  *  *  *  *  *  *  *  *  *

Elements of Economics. Section 2
Associate Professor Broadus Mitchell

THE JOHNS HOPKINS UNIVERSITY
MID-YEAR EXAMINATION
Political Economy 1 C

[Monday, Jan. 31, 1938. 9 a.m. Dr. Mitchell]

  1. What is the general theory of the competitive economic system?
  2. (a) Show how prices are determined under conditions of competition.
    (b) What are some of the forces which, in fact, interfere with this perfect operation of competition?
  3. On what economic theory do inflationists rely? Explain this theory briefly.
  4. State and explain the marginal utility theory of value.
  5. Identify briefly: the Physiocrats, Colbert, Kirkcaldy, James Watt, P. S. DuPont, Salmon P. Chase, R. B. Taney, Friedrich Engels, holding company, consumer‘s surplus, elastic demand.
  6. (a) Discuss the chief means used in this country to cope with the problem of unemployment.
    (b) What is meant by “technological unemployment”?
  7. Explain the changes made in the Federal Reserve System as a result of the depression of 1929.

 

THE JOHNS HOPKINS UNIVERSITY
FINAL EXAMINATION
IN
POLITICAL ECONOMY 1 C

Dr. Mitchell

May 30, 1938
9 a.m.

  1. (a) Give the purposes, structure, and method of operation of the Federal Reserve System.
    (b) Why, in your opinion, did it fail to prevent the depression of 1929 and the subsequent closing of the banks of the country?
  2. (a) Explain the differential or Ricardian theory of rent.
    (b) What were the influences responsible for Henry George’s book, Progress and Poverty?
    (c) What is the Socialist’s criticism of the single tax proposal?
  3. State and discuss the Wage Fund Theory and the Exploitation theory of wages.
  4. (a) How do pure profits arise?
    (b) What developments in American economic life appear to make our old reliance upon the profit motive inappropriate now?
  5. In what sense is it true that the cost known as interest would be present even in a collectivist economy?
  6. What forces are responsible for the present increased demand for industrial unionism as against craft unionism in the United States?
  7. Contrast the teachings of Robert Owen with those of Karl Marx.

*  *  *  *  *  *  *  *  *  *  *  *

Elements of Economics. Section 3
Assoc. Professor William O. Weyforth

THE JOHNS HOPKINS UNIVERSITY
MID-YEAR EXAMINATION
POLITICAL ECONOMY 1 C

Dr. Weyforth

February 3, 1938
9 a.m.

  1. What is meant by the doctrine of “laissez faire”? That were the conditions under which the doctrine was developed? Explain the arguments in favor of the doctrine, and the factors responsible for a departure from the doctrine in recent years.
  2. What are the essential features of the corporation as a form of business organization? How do you account for the rise of the corporate form of business organization in recent years? Distinguish the following: common stock, preferred stock, bonds.
  3. What are the “factors of production” and the “agents of production”? What is meant by the “best combination of the agents of production” as applied to any business enterprise. Distinguish between the average total unit cost of production and the marginal cost of production. Illustrate by diagram.
  4. Explain what is meant by an individual demand schedule for any commodity. Show the relationship between such a demand schedule and the theory of marginal utility. Upon what principles does a consumer tend to divide his expenditures among different commodities? How is the total demand schedule in any market for a certain commodity related to the individual demand schedules?
  5. Show how the market price is determined by supply and demand under conditions of competition. Show how an increase in supply, demand remaining constant, will lead to a decline in price. Would the decline in price be greater where the demand is elastic or inelastic? Explain the problem by the use of diagrams.
  6. In what way is the monopolist able to control price? What is the theory of monopoly price? Explain the statement that the monopolist will tend to fix the price at the point where the marginal revenue curve intersects the marginal cost curve.
  7. What is meant by monopolistic competition? State some of the circumstances under which it tends to appear. Explain the difference in the shape of the demand curve for the product of an individual producer under conditions of pure competition and those of monopolistic competition.
  8. Explain the distinction between industries of constant cost, increasing cost, and decreasing cost. What are the factors primarily responsible for these differences, that is, under what circumstances are we likely to have each type of industry? How can we have an industry of increasing cost and at the same time constant or falling prices for the product of that industry over a period of years.
THE JOHNS HOPKINS UNIVERSITY
FINAL EXAMINATION
POLITICAL ECONOMY 1 C

Dr. Weyforth

June 2, 1938
9 a.m.

  1. In the regulation of public utilities, what are the important economic problems involved in the determination of a fair price to be charged for the services rendered?
  2. Show how bank deposits subject to check serve as a medium of exchange. Explain how the volume of such deposits may be affected by the loan and investment policies of banks.
  3. What are business cycles? Explain the theory that fluctuations in general business activity are due primarily to fluctuations in the volume of investment. What are the possibilities of public spending as a means of remedying business depression?
  4. Explain the theory that under conditions of competition the rate of wages in any occupation tends to correspond to the marginal productivity of labor in that occupation. According to this theory how do you explain the relatively higher wages paid to skilled workers as compared with unskilled workers?
  5. Explain how, other things being equal, the growth of population will affect the rent of land. How is this explanation related to Henry George’s proposal. for a single tax on land?
  6. Show how interest rates are determined by the supply of and the demand for loanable funds. What are the sources of the supply of and demand for loanable funds? How may banking policy affect interest rates? What are the limits of banking policy in this respect?
  7. What are the factors that give rise to profits? What functions do profits perform in an economic system of free enterprise?
  8. What are the characteristic features of capitalism? What do you mean by socialism? by communism? What is “utopian” socialism? “scientific socialism”?
  9. Explain the law of comparative cost as applied to international trade.

    *  *  *  *  *  *  *  *  *  *  *  *

Elements of Economics. Section 4
Dr. Howard E. Cooper

THE JOHNS HOPKINS UMIVERSITY
MID-YEAR EXAMINATION
POLITICAL ECONOMY 1 C

[Dr. Cooper]

January 31, 1938
9 a.m.

Please write your answers to these questions legibly and in ink.

  1. “The Production of wealth may take the form of the creation of form utility, of place utility, or of time utility.”
    Explain and give examples of each.
  2. What would be the effect on our industrial system of too much saving, of too little saving?
  3. “The division of labor promotes production by economizing labor, increasing its efficiency, and making more effective use of capital.” This is all helpful from the point of view of capital. How about the laborer?
  4. What is the concept of marginal utility?
  5. What are some examples of elastic demand?
    What are some examples of elastic supply?
  6. Distinguish between increasing costs and decreasing costs.
  7. What is the meaning of imperfect competition?
  8. What are some of the limitations on monopoly price?
  9. Suppose the quantity of money held by everyone were to be doubled. Would we be twice as wealthy? Explain.
  10. Discuss briefly some of the factors which influence the rate of interest.
THE JOHNS HOPKINS UNIVERSITY
FINAL EXAMINATION
IN
POLITICAL ECONOMY 1 C

Dr. Cooper

Monday [May] 30, 1938
9 A.M.

Please use ink and write clearly.

  1. In what ways does the Federal Reserve System seek to control credit?
  2. (a) What is the significance of the double budget made use of by President Roosevelt?
    (b) Trace briefly the National Debt of the United States?
  3. (a) What is meant by combining business risks to prevent their harmful effects? Illustrate.
    (b) What is meant by passing risks to the shoulders of others more able or willing to bear them? Illustrate.
  4. Define the following:
    (a) a pool
    (b) a trust
    (c) a holding company
    (d) a consolidation
    (e) a merger.
  5. The newspapers frequently carry statements to the effect that local patriotism requires that you patronize local merchants and industries in order to keep money at home. Criticize.
  6. What factors lead to fluctuations in foreign exchange?
  7. Would you advocate an early return to the gold standard? Give reasons for and against.
  8. Discuss briefly the factors affecting the supply and demand for labor.
  9. Distinguish between the craft or trade union, and the industrial union. Which do you think will be the union of the future? Why?
  10. Marx held that the tendency toward concentration, and the increasing numbers and misery of the laboring class would lead us into Socialism. Taking into consideration the long time period, is it possible that he was right?

*  *  *  *  *  *  *  *  *  *  *  *

Elements of Economics. Section 5
Dr. Robert G. Deupree

THE JOHNS HOPKINS UNIVERSITY
MID-YEAR EXAMINATION
POLITICAL ECONOMY 1 C

Dr. Deupree

February 1, 1938
1 p.m.

  1. Define: wealth, utility, income, capital, functional distribution.
  2. Contrast: the manorial system, guild system, and domestic system.
  3. Distinguish between the following forms of the business unit: Individual proprietorship, partnership, limited partnership, and corporation.
  4. Discuss the economic effects of division of labor.
  5. Explain the marginal utility concept.
    How does it relate to price?
    Explain marginal cost of production.
    How does it relate to price?
  6. Distinguish between production under conditions of increasing, decreasing, and constant costs, giving examples of each.
  7. A monopolist finds the following cost and demand schedules prevailing in the market for his commodity:
Quantity Cost per unit Selling price per unit
1,000,000 1.00 1.00
750,000 1.07 1.10
500,000 1.36 1.40
250,000 1.49 1.50

What would be the monopoly price in this market? Why? Are there any limitations upon the monopolists’ power to fix price? Explain.

  1. Show how economic rent arises on urban lands. Does the law of diminishing returns apply to urban lands? If so, in what manner? Explain what is meant by the extensive and intensive margins of cultivation in agriculture and their relation to economic rent.
  2. What is the time preference theory of interest?
    How would the rate of time preference be affected by:
  1. a steady growth of the national income?
  2. extravagance in consumption?
  3. old age pensions paid by the government?
THE JOHNS HOPKINS UNIVERSITY
FINAL EXAMINATION
POLITICAL ECONOMY 1 C

Dr. Deupree

June 1, 1938
9 a.m.

  1. Identify or define:
    1. Karl Marx
    2. Thomas Malthus
    3. Gresham’s law
    4. Knights of Labor
    5. Rochdale system
    6. Law of large numbers
    7. Hedging
    8. Processing taxes
    9. Gold export point
    10. Mint par of exchange.
  2. a. Discuss money.
    b. Define a commercial bank and discuss its functions.
    c. Define a central bank and discuss its functions.
  3. Summarize the major provisions of and evaluate any two of the following:
    a. Banking Act of 1935
    b. Social Security Act
    c. Trade Agreements Act
    d. National Labor Relations Act
    e. National Industrial Recovery Act
    f. Clayton Anti-trust Act
  4. a. Sketch the basis of the conflict between the American Federation of Labor and the Committee for Industrial Organization. Discuss the relative merits of the arguments.
    b. How would you account for the wages paid a particular group of workers — for example, carpenters in Baltimore?
  5. a. What are the basic Socialist proposals?
    b. Distinguish: Socialism, Communism, Fascism.
  6. How would you meet the unemployment problem in the United States? Give reasons for each step you propose.

Source: Johns Hopkins University, Eisenhower Library. Ferdinand Hamburger, Jr. Archives. Department of Political Economy. Curricular Materials. Series 6. Box 2. Folder “Department of Political Economy — Exams, 1936-1940”.