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Business Cycles Exam Questions Harvard Problem Sets

Harvard. Report guidelines and exam for commercial crises and trade cycles. Andrew, 1905-1906

Abram Piatt Andrew, Jr. (1911)

While the exam questions for A. Piatt Andrew’s course on commercial crises and trade cycles for 1905-06 have been transcribed and posted earlier, this post adds his “Suggestions with regard to first report and accompanying chart.” This artifact provides a taste of an actual course assignment.  

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Previously posted

All of Andrew’s exams from his commercial crises and trade cycles course at Harvard for the academic years 1902-03 through 1907-08.

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Commercial Crises
and Cycles of Trade
Economics 12b
1905-06 

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Course Enrollment
Commercial Crises
and Cycles of Trade
1905-06

[Economics] 12b 1hf. Ass’t. Professor Andrew. Commercial Crises and Cycles of Trade.

Total 55: 9 Graduates, 20 Seniors, 20 Juniors, 5 Sophomores, 1 Other.

Source: Harvard University. Report of the President of Harvard College, 1905-190 6, p. 72.

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ECONOMICS 12b
SUGGESTIONS WITH REGARD TO FIRST REPORT AND ACCOMPANYING CHART

I. Concerning the Chart

  1. Neatness is desirable; accuracy essential.
  2. Before beginning the chart note the highest and the lowest figures, and devise a scale so that both may be included on the paper, but upon the largest possible plan.
  3. When several sets of figures are to be included upon the same chart, if possible, draw the various lines upon the same scale. If, by so doing, however, variations in one of the lines will be too small to be easily discerned, increase the scale for this line.
  4. Note the decimal division of the profile paper. Do not start with other than a decimal number as a basis. If you have a period covering 20 or 30 years a good plan is to let one of the large squares represent two years.
  5. When two or more decades are included mark the decennial years clearly with a heavier line than the other years.
  6. Bring the figures in every case as nearly to date as possible.
  7. Note on bottom of chart in small letters the source of your statistics, volume and page.
  8. Note also on chart whether the statistics are for the fiscal, calendar, or crop year, — or the year ending at what date.
  9. Place title and your own name somewhere on the chart.

II. Concerning the Report

  1. Give your figures in tabular form, naming all of the sources.
  2. Discuss the sources of your statistics, their authority, and their comprehensiveness.
  3. Trace the trade cycles as shown on your chart, showing the relation between the line movements and periods of prosperity or depression.
  4. Explain the reasons for the larger movements, paying particular attention to the maximal and minimal years. Show to what extent they may be caused by, or may be the cause of industrial fluctuations.
  5. When several countries are concerned note the resemblances and differences in their respective movements, explaining any important dissimilarities.
  6. Name all references employed in the preparation of the report. The references given by the instructor are only preliminary suggestions, and not meant to be sufficient for the completion of the report.

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003, Box 1, Folder “Economics, 1905-1906”.

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ECONOMICS 12b
Mid-year Examination, 1904-05

Omit one question
  1. Compare as regards recent cycles of trade,—
    1. the number and liabilities of failed firms.
    2. banking and commercial failures.
    3. railway and commercial failures.
  2. To what extent have changes in the clearings of the New York banks registered changes in general business?
  3. Explain Juglar’s theory as to the movements of bank loans and reserves, and state how far it is confirmed by American experience.
  4. Explain what was done by the Bank of England to relieve apprehension in 1825, 1847, 1857, 1866, 1890.
  5. Explain and discuss Rodbertus’ theory of crises.
  6. Upon what occasions within the past thirty-five years and by what means, have the American Secretaries of the Treasury helped to relieve a stringency in the financial centres?
  7. In what ways is business affected by the condition of the crops? Within what limitations? In the case of which crops is the connection closest?
  8. What part does “credit” play in the explanation of crises,—
    1. according to Laughlin,
    2. according to Chevalier,
    3. in your own opinion?
  9. In what ways and to what extent are trade conditions apt to be affected,—
    1. by the increasing gold supply,
    2. by the trust movement,
    3. by increasing armies and navies,
    4. by the present agricultural situation?

Source: Harvard University Archives. Harvard University. Mid-year Examinations, 1852-1943. Box 7, Bound Volume: Examination Papers, Mid-Years 1905-06. Also a copy in Harvard University, Examination Papers 1873-1915. Box 8, Bound volume: Examination Papers, 1906-07; Papers Set for Final Examinations in History, Government, Economics,…,Music in Harvard College (June, 1906), p. 37.

Image Source: 1911 portrait of Abram Piatt Andrew, Jr. by Anders Born at Boston’s Isabella Stewart Gardner Museum. Wikimedia Commons.

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Business Cycles Distribution Economic History Exam Questions History of Economics Industrial Organization International Economics Johns Hopkins Labor Money and Banking Public Finance Public Utilities Statistics Theory

Johns Hopkins. General Written Exam for Economics PhD. 1956

 

One is struck by the relative weight of the history of economics in this four part (12 hours total) general examination for the PhD degree at Johns Hopkins in 1956. Also interesting to note just how many different areas are touched upon. Plenty of choice, but no place to hide.

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Other General Exams from Johns Hopkins

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GENERAL WRITTEN EXAMINATION FOR THE PH.D DEGREE
DEPARTMENT OF POLITICAL ECONOMY

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PART I
June 4, 1956, 9-12 a.m.

Answer two questions, one from each group.

Group I.
  1. Write an essay on the theory of capital. It should include a discussion of the place of capital theory in economic analysis: for what purposes, if any, we need such a theory, Do not omit theories or issues which were important in the history of doctrines, even if you should regard them as irrelevant for modern analysis.
  2. Discuss and compare the capital theories of Böhm-Bawerk, Wicksell, and Hayek.
  3. Write an essay on the theory of income distribution. Organize it carefully, as if it were designed for an article in the Encyclopedia of the Social Sciences. Include discussions of alternative theories such as imputation theories, residual theories, surplus value theories, etc.
Group II.
  1. The following statements attempt to show that marginal productivity theory is inconsistent with factual observation. Accepting the stated facts as given, discuss whether they call for the rejection or major modification of the theory. If so, how? If not, why not?
    1. “In the most important industries in the United States wage rates are set by collective bargaining and are largely determined by the bargaining strength of the parties. Marginal productivity of labor is neither calculated nor mentioned in the process.”
    2. “In many industries competition among employers for workers is so limited that most firms are able to pay less than the marginal productivity of labor.”
    3. “Workers in some trades — say, carpenters or bricklayers — work essentially the same way as their predecessors did fifty years ago; yet their real wages have increased greatly, probably not less than in occupations where productivity has improved considerably over the years.”
  2. The determination of first-class and second-class passenger fares for transatlantic ocean transportation involves problems of (a) joint or related cost, (b) related demand, and (c) discriminatory pricing. Discuss first in what ways these three phenomena are involved here; then formulate a research project to obtain the factual information required for an evaluation of the cost relationships and demand relationships prevailing in the case of two-class passenger ships; and finally state the criteria for judging whether the actual rate differential implies conscious discrimination in favor of first-class passengers, conscious discrimination against first-class passengers, wrong calculation and faulty reasoning on the part of the shipping lines, or any other reason which you may propose.

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PART II
June 4, 1956, 2-5 p.m.

Answer three questions, at least one from each group.

Group I.
  1. There is a running debate on the question whether trade unions are labor monopolies. This debate obviously turns on the meaning of monopoly and on what effects union have had on their members’ wages, output, and conditions of work. Give both sides of the argument.
  2. Write an essay on the demand for labor.
  3. Write down everything you know about the incidence of unemployment among various classes of workers and about the fluctuations of unemployment over time. Discuss some of the problems of developing a workable concept of unemployment. Indicate whether the statistical behavior of unemployment throws any light on its causation.
Group II.
  1. What is a “public utility”? According to accepted regulatory principles, how are the “proper” net earnings of a utility company determined? And, finally, what factors are considered in setting an “appropriate” rate structure?
  2. What is the major purpose of the Sherman Anti-Trust Act of 1890? What are some of the more significant problems in determining what constitutes “restraint of trade”? What tests would you apply? Why?
  3. Analyze the economic effects of a corporate income tax. Be as comprehensive as you can.
  4. What are flexible agricultural price supports? Explain how they are determined and applied. Evaluate their use in the light of reasonable alternatives.

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PART III
June 5, 1956, 9-12 a.m.

Answer three questions, one from each group.

Group I.
  1. Describe briefly Schumpeter’s theory of economic development, and comment upon the possibility of testing it empirically.
  2. Describe briefly Keynes’ general theory of employment, interest and money; state its assumptions, structure, and conclusions; and evaluate it critically in the light of more recent theoretical and empirical findings.
Group II.
  1. What characteristics of economic cycles would you consider important in a statistical study of business cycles?
  2. In the study of long-term trends, what criteria would you use in constructing index numbers of production?
  3. What measures of economic growth of nations would you us? Consider carefully the various characteristics that you would deem indispensable in measurements of this sort.
Group III.
  1. Give a brief definition, explanation and illustration for each of the following:
    1. variance;
    2. confidence interval;
    3. coefficient of regression;
    4. coefficient of correlation;
    5. coefficient of determination;
    6. regression line.

[Note: Indicate where you have confined yourself to simple, linear correlation.]

  1. Write an essay on statistical inference by means of the following three techniques:
    1. chi square;
    2. analysis of variance;
    3. multiple regression.

Indicate the types of problem in which they are used, and how each type of problem is handled.

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PART IV
June 5, 1956, 2-5 p.m.

Answer four questions, one from each group.

Group I.
  1. Political arithmetic is a term that is applied to certain writings that appeared from roughly 1675 to 1800. What gave rise to such writings? What were the contributions of the different members of the “group”? Why should Political Arithmetic be given a terminal date?
  2. Discuss Quesnay’s Tableau Économique, Do you see in it anything of significance for the subsequent development of economic theory?
  3. Present arguments for the contention that J. B. Say was far more than “a mere disciple of Adam Smith”.
Group II.
  1. Discuss the relations between the English economic literature of the first half of the 19th century and the events, conditions, and general ideas of that time.
  2. Select three episodes in American economic history, and use your knowledge of economic theory to explain them.
Group III.
  1. Analyze the economic effects of a large Federal debt. Be as comprehensive as you can.
  2. At one time or another each of the following has been proposed as the proper objective or goal of monetary policy: (1) The stabilization of the quantity of money; (2) The maintenance of a constant level of prices; (3) The maintenance of full employment.
    Explain for each policy objective (a) what it means, that is, exactly what in “operational” terms might be maintained or stabilized; (b) how the objective could be achieved, that is, what techniques could be used to achieve it; and (a) the difficulties with or objections to the proposal.
  3. Irving Fisher and others have proposed that all bank be required to hold 100% reserves against their deposits. This was designed to prevent bank failures and, more important, to eliminate the perverse tendency of money to contract in recessions and expand in booms.
    Explain whether the proposal would have the effects claimed for it, and if so, why, and discuss what other effects it might have.
Group IV.
  1. Discuss the “law of comparative advantage” in international trade.
  2. Discuss “currency convertibility”.
  3. Discuss the “transfer problem”.
  4. Discuss the “optimum tariff”.
  5. Discuss the “foreign-trade multiplier”.
  6. Discuss alternative concepts of the “terms of trade”.
  7. Discuss the “effects of devaluation upon the balance of trade”.

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Source: Johns Hopkins University. Eisenhower Library. Ferdinand Hamburger, Jr. Archives. Department of Political Economy Series 5/6.  Box No. 6/1. Folder: “Comprehensive Exams for Ph.D. in Political Economy, 1947-1965”.

Image Source: Fritz Machlup in an economics seminar. Evsey Domar visible sitting third from the speaker on his right hand side. Johns Hopkins University Yearbook, Hullabaloo 1956, p. 15.

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Business Cycles Exam Questions Harvard

Harvard. Exam and enrollment for History and Theory of Commercial Crises. Andrew, 1902-1903

Abram Piatt Andrew

Before there were courses on business cycles, courses at Harvard dealt with “commercial crises”. Abram Piatt Andrew, Jr. was the young man for the job in 1902-03. His Harvard Ph.D. dissertation’s title was “The ways and means of making payments” (1900) and together with Oliver Mitchell Wentworth Sprague he was an essential member of the post-Dunbar staff to cover the field of money and banking (and monetary macroeconomics).

Oops I did it ago. Almost all of this post had been shared in a collection of all of Andrew’s exams for commercial crises (1903-1908). The colorized and retouched photo from 1909 is new to this post.

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Biography

ABRAM PIATT ANDREW, Jr., was born in La Porte, La Porte County, Ind., February 12, 1873; attended the public schools and the Lawrenceville (N. J.) School; was graduated from Princeton College in 1893; member of the Harvard Graduate School of Arts and Sciences 1893-98; pursued postgraduate studies in the Universities of Halle, Berlin, and Paris; moved to Gloucester, Mass,, and was instructor and assistant professor of economics in Harvard University 1900-1909; expert assistant and editor of publications of the National Monetary Commission 1908-11; Director of the Mint 1909 and 1910; Assistant Secretary of the Treasury 1910-12; served in France continuously for 4-1/2 years, during the World War, first with the French and later with the United States Army; commissioned major, United States National Army, in September 1917 and promoted to lieutenant colonel September 1918; awarded the Croix de Guerre and the Legion of Honor medal by the Republic of France in 1917 and the distinguished service medal by the United States Government in 1918; elected as a Republican to the Sixty-seventh Congress to fill the vacancy caused by the resignation of Willfred W. Lufkin; reelected to the Sixty-eighth and to the six succeeding Congresses, and served from September 27, 1921, until his death; delegate to the Republican National Conventions at Cleveland in 1924 and at Kansas City in 1928; member of the board of trustees of Princeton University 1932-36; died in Gloucester, Mass., June 3, 1936; remains were cremated and the ashes scattered from an airplane flying over his estate at Eastern Point, Gloucester, Mass.

Source: Memorial Service Held in the House of Representatives of the United States, Together with Remarks Presented in Eulogy of Abram Piatt Andrew, Late a Representative from Massachusetts. Seventy-fifth Congress, First Session. Washington, D.C. GPO, 1938. Archived transcription at the American Field Service website.

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Course Description

  1. b2 hf. History and Theory of Commercial Crises. Half-course (second half-year). Mon., Wed., and (at the pleasure of the instructor) Fri., at 9. Dr. Andrew.

Course 12b will be devoted to the study of the more important crises of the past two hundred years. The phenomena of these crises will be described, and the record of events before and after will be examined with the object of disentangling their contributory causes and their consequences. The influence upon commercial fluctuations of the present organization of industry, of government finance, of foreign trade, of the money supply, of speculation, of banking methods, and of other credit institutions will be considered, as well as questions with regard to periodicity, over-production and over-investment. In connection with these subjects attention will be given to the methods actually employed in dealing with crises, and to proposed reforms designed to prevent or relieve them.

Subjects will be assigned for special reports, and these reports will be presented for discussion in class.

Course 12b is open to students who have passed satisfactorily in Course 1.

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.

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Course Enrollment, 1902-1903

Economics 12b. 2hf. Dr. Andrew. — History and Theory of Commercial Crises.

Total 37: 2 Gr., 9 Se., 19 Ju., 5 So.,2 Others.

Source: Harvard University. Annual Report of the President of Harvard College, 1902-03, p. 68.

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ECONOMICS 12b
Final Examination, 1903

Omit one question.

  1. “The crisis is practically of nineteenth century origin, and it is an acute malady to which business appears to be increasing subject.”
    Give your opinion of these statements.
  2. In what respects was the English crisis of 1866 peculiar?
  3. “Commercial crises of the earlier type now belong only to history in England.”
    Discuss this statement and explain the situation to which it refers.
  4. Compare the American crises of 1884 and 1893 as regards antecedent conditions, course of events and consequences.
  5. Describe in their mutual connections the fluctuations in exports and imports of commodities, in gold shipments, and in prices which occur in a normal trade cycle.
    Discuss DeLaveleye’s theory of crises.
  6. (a) How far did Jevons succeed in proving a relation between crises and agricultural conditions?
    (b) To what extent can a connection be traced in the United States between trade cycles and crop conditions?
    (c) In the case of which crop is the connection closest?
  7. Explain and discuss Professor Laughlin’s theory as to the relations between “normal” and “abnormal”credit and price movements.
  8. Explain and discuss Rodbertus’ theory of crises.
  9. Explain and discuss Professor Carver’s theory of industrial depressions.

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 Source: Picture of Abram Piatt Andrew from ca. 1909 used in a magazine article on his appointment to the directorship of the U. S. Mint. Hoover Institution Archives. A. Piatt Andrew Papers, Box 51. Retouched and colorized by Economics in the Rear-View Mirror.