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Chicago Exam Questions Socialism Suggested Reading Syllabus Undergraduate

Chicago. Readings and exam for “Wage-labor and capital”, 1970

The following set of course materials from the University of Chicago was included in a folder for “Comparative Economic Systems” in Martin Bronfenbrenner’s papers at Duke University. According to his c.v. he would have still been a professor at Carnegie Tech at that time and there is no mention of a visiting professorship at Chicago. As it turns out, I was correct in presuming that this was not a course taught by Bronfenbrenner. The Head of Research and Instruction of the Special Collections Research Center at the University of Chicago Library, Catherine Uecker, consulted the course timetable for the spring quarter 1970 and found that the instructor was Professor Gerhard Emil Otto Meyer.

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Social Sciences 273
Spring 1970

“Wage-Labor and Capital” in
Marxian and Modern Theory

GRADE REQUIREMENTS:

a) term paper
b) final examination

TENTATIVE READING LIST (subject to some changes)

Note: All readings except those labelled as “optional” (Opt.) are required. Each student is expected to read, in addition to all required readings, some agreed-upon optional readings which may, but need not, be taken from the list below. The following readings are more or less systematically listed, not in the order they will be assigned.

  1. Karl Marx

Capital, vol. I, chs. 4-9; 11-12; 15 (sec. 1-7); 16-19; 25 (sec. 1-4); 32 (chs. 10 and 24 optional).

The Communist Manifesto
Wage-Labor and Capital
Value, Price and Profit
Critique of the Gotha Programme
[These four readings are available in many editions; conveniently combined in K. Marx and F. Engels, Selected Works (paperback, International Publishers)]

The Economic and Philosophic Manuscripts of 1844, trans. By M. Milligan (International Publishers), pp. 65-91, 106-131 (pp. 132-164 optional)

Marx’s “Enquête Ouvrière” (mimeographed)

  1. Interpretive Materials on Marx’ Theory (in general, and on Labor-Capital Relations in particular)

Sweezy, Paul M., The Theory of Capitalist Development, Introduction and chs. 1-5 (optional, recommended for those who need a general survey of Marxian “economics”)—or

Ernest Mandel, Marxist Economic Theory (2 vols.), ch. 1-5 (optional-alternative to Sweezy)

Sowell, Thomas, Marx’s “Increasing Misery Doctrine” (mimeographed)

Avineri, Shlomo, The Social and Political Thought of Karl Marx chs. 2-4 and 6 (opt.)

Lefebvre, Henri, The Sociology of Marx, ch. 4 (opt.)

Dahrendorf, Ralph, Class and Class Conflict in Industrial Society, ch. I (opt.)

  1. Modern Economic Theory (especially Wage and Employment Theory):

Hicks, J.R., Theory of Wages (selections) (opt.)

Douglas, Paul H., Theory of Wages (selections) (opt.)

Robertson, D.H., Lectures on Economic-Principles, vol. II, (selections) (opt.)

  1. Modern Sociological Theory with special regard to Problems of Class, Work and Alienation)

Dahrendorf, Ralph, (see above under B), ch. 2 ff. (opt.)

Bendix, R. and S.M. Lipset, Reader on Class, Status and Power (First and Second Editions) (selections) (opt.)

Arendt, Hanna, The Human Condition (selections) (opt.)

Bell, Daniel, The End of Ideology, esp. chs. 12 and 16 (Opt.)

Ruitenbeck, H.M. (ed.), Varieties of Modern Social Theory (selections) (opt.)

Blauner, Robert, Alienation and Freedom (selections) (opt.)

Josephson, E. & M., (ed.), Man Alone. Alienation in Modern Society. (selections) (opt.)

  1. Marxian and Modern Theory Confronting Each Other

Horowitz, David. (ed.), Marx and Modern Economics, pp. 68-116 (other essays opt.)

Robinson, Joan, An Essay on Marxian Economics (opt.)

Lange, Oskar, Political Economy, vol. I (selections) (opt.)

Schumpeter, Joseph, Capitalism, Socialism and Democracy, part I (opt.)

Aron, Raymond, Main Currents in Sociological Thought, vol. I, pp. 107-180 (opt.)

Kerr, Clark, Marshall, Marx and Modern Times (opt.)

Wolfson, Murray, A Reappraisal of Marxian Economics, ch. 1-3 (opt.) (Penguin Bks.)

Samuelson, Paul, “Wages and Interest: Marxian Economic Models” Am. Ec. Review, Dec. 1957) (opt.)

Selected theoretic and empirical materials on technological unemployment and automation (to be announced).

*  *  *  *  *  *  *  *  *  *  *  *

Social Sciences 273
Spring 1970

“Wage-Labor and Capital” in
Marxian and Modern Theory

Supplementary List of Optional Readings

1) to Section B:

Solow, Robert, “The Constancy of Relative Shares” in American Economic Review, September 1958.

Ossowski, S., Class Structure in the Social Consciousness

Wesolowski, W., “Marx’s Theory of Class Domination” in: Lobkowitz, H., ed., Marx and the Western World

2) to Section C:

Dobb, M, Wages

Rees, R., The Economics of Trade Unions (both these books are published in ‘Cambridge-Chicago Economic Handbooks’ series)
Hicks, J.R., Theory of Wages has been published in a second edition with important additions and commentary

3) to section D:

Bottomore, T.B., Classes in Modern Society (paperback)

4) to section E:

Robinson, Joan, Economic Philosophy, ch. II

Adelman, Irma, Theories of Economic Growth and Development, ch. 5

5) on technological unemployment and automation:

Lederer, Emil, Technical Progress and Unemployment (International Labour Office) 1938

Woytinsky, W., Three Sources of Unemployment (International Labor Office) 1935

Kaehler, Alfred, “The Problem of Verifying the Theory of Technological Unemployment” in Social Research, vol. II, 1935

Neisser, Hans P., “Permanent Technological Unemployment” in Am. Economic Review, March 1942, pp. 50-71

“The Triple Revolution” in Fromm, E., ed., Socialist Humanism, pp. 441-461

Marcuse, H., Five Lectures, esp. lecture V, “The End of Utopia”

Brunner, Karl, “The Triple Revolution and a New Metaphysics” in New Individualist Review, Spring 1966 (vol. 4, no. 3)

Silberman, Charles E., and the edition of Fortune, The Myth of Automation

Brozen, Yale, Automation: The Impact of Technological Change (1963)

*  *  *  *  *  *  *  *  *  *  *  *

Social Sciences 273
Spring 1970

“Wage-Labor and Capital” in
Marxian and Modern Theory

Take-home Examination:

Directions: Write two essays, one from group A (topics 1-5) and one from group B (topics 6-11). Devote approximately one hour on each essay. Return the examination to Gates-Blake 431 or 428 not later than Thursday, June 11, at 12:30 P.M. Indicate on your examination a) which kind of grade you expect (P., I. or letter grade) and b) topic of oral report or term paper you have completed or intend to write. If a member of the class wishes to obtain a letter grade (i.e. grade other than P or I) this quarter, the term paper should be handed in not later than Friday, June 12, at 5 P.M. (in G-B 431).

(In none of the topics listed below, will you be graded on the basis of the position taken by you, but rather with regard to the quality of your analysis or argument).

Group A (Choose one topic)

Topic 1. Explain (as far as possible in your own terms) what Marx means by the “wage-labor system” as distinguished from other types of social-economic organization.

Topic 2. In what respects did Marx modify (or retain) his views concerning increasing working class misery (as expressed in the Communist Manifesto) in his later writings?

Topic 3. How do, according to Marx, different kinds of capitalistic accumulation processes affect the position of wage-laborers and the general wage-labor system?

Topic 4. How does Marx conceive the end of the capitalistic system?

Topic 5. Explain the relationship between alienation, exploitation and class domination in Marx (i.e. the younger or more mature one; or both).

Group B (Choose one topic)

Topic 6. Characterize broadly the major differences in the general approach (or “method”) of Marxian theory and “modern” social science.

Topic 7. In what substantive respects do major Marxian theories appear to be paralleled (or confirmed) or contradicted by results of ‘modern’ social sciences?

Topic 8. Does the abandonment of Marx’ labor-theory of value (and the consequent particular theory of surplus value and exploitation) necessarily imply a stand in support of private property and private enterprise?

Topic 9. Assuming that Marxian (classical and present-day) and non-Marxian (“modern”) social analysis are both live options and both faced with new difficulties, problems, and tasks, how would you broadly assess the most fruitful directions(s) of “praxis”-oriented social enquiry?

Topic 10. (If you did not choose topic 5 in Group A): Restate Marx’s conception of “freedom” (with regard to its most relevant social-historical dimensions and stages) in brief contrast with alternative conceptions of freedom.

Topic 11. Choose one of the optional readings not used by you for term paper or oral report and use it either as basis for comment on Marx’ views (concerning the condition of wage-labor) or, vice versa, as object of comments from a “Marxian” point of view.

 

Source: Duke University. David M. Rubenstein Rare Book and Manuscript Library. Economists’ Papers Archive. Martin Bronfenbrenner Papers, Box 23, Folder “Comparative Economic Systems a.d.”.

Image Source: From the 65th birthday dinner honoring Gerhard Meyer at Hutchinson Commons. University of Chicago Photographic Archive, apf1-04472, Special Collections Research Center, University of Chicago Library.

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Exam Questions Harvard

Harvard. Mid-year and Final Exams for all three courses in Political Economy. Laughlin and Dunbar, 1879-80

 

All you could learn in political economy at Harvard in 1880 was packed into four semesters (two full courses). The core textbook was John Stuart Mill’s Principles of Economics. This post provides enrollment data together with the mid-year and course final examinations for Political Economy 1, 2, and 3. What makes this post particularly interesting is that the relevant sections or pages of Mill’s Principles are cited along with the examination questions. Economics in the Rear-view Mirror has added links to those items below.

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Actually only two distinct political economy courses offered in 1879-80

From the following note in the annual Harvard course catalogue we see that Political Economy 1 only offered a “lite” version of Political Economy 2. “Courses 1 and 2 cannot be taken together, nor can either be taken by any student who has taken the other”; “Course 3 is open to those only who have passed satisfactorily in Course 2.” The Harvard University Catalogue (1879-1880), p. 84.

An important guest lecturer at Harvard in 1879-80:

Besides prescribed and elective courses for credit, Harvard offered opportunities for “voluntary instruction”:  In 1879-80 Professor Simon Newcomb gave three public lectures on Political Economy.

Source: The Harvard University Catalogue (1879-1880), p. 90.

The John Stuart Mill textbook of Harvard choice

Most likely edition of John Stuart Mill’s Principles of Political Economy used at Harvard was a New York reprint of the London 5th edition. It corresponds to the pages given for the mid-year exam in Political Economy 1.

“From the fifth London edition” 2v. New York: D. Appleton, 1868.

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Political Economy 1

Enrollments and Text
Political Economy 1
1879-80

Political Economy 1. Dr. Laughlin and Prof. Dunbar. (partial Course.) — Selections from Mill’s Principles of Political Economy. — 1 Section; 2 Exercises per week for Students; 2 Exercises per week for Instructors.

Total 21: 7 Seniors, 9 Juniors, 4 Sophomores, 1 Law.

Source: Annual Report of the President of Harvard College, 1879-80, page 56.

 

POLITICAL ECONOMY 1.
Mid-Year Examination
1879-80

  1. Comment on the following: “The cry was constantly — I know it myself from my intimate acquaintance with the large manufacturers and the small manufacturers too — that every one of them needed more currency than they had. They had capital, but could not get that which enabled them to pay off their hands…The manufacturers need a currency which will enable them to pay their weekly and daily debts.” — Cong. Record, April 7, 1874.
  2. State some of the objections made to Malthus’ Law of Population. (I. 439-40)
  3. Give the law of value regulating manufactured products. (I. 560) How far are such products affected by the Law of Diminishing Returns? (I. 238)
  4. State the argument for or against the common saying “wages are high when trade is good.” (I. 421)
  5. In what way can an increase of Population affect the Cost of Labor to the Capitalist?
  6. Define clearly Value, Price, Real Wages, and Cost of Production.
  7. Describe the offices which are performed by Money. (B. III., ch. vii.)
  8. What is to be said to the following: “Some political economists have objected altogether to the statement that the value of money depends on its quantity combined with the rapidity of circulation; which, they think, is assuming a law for money that does not exist for any other commodity.” (II. p. 43)
  9. What effect had the discovery of gold in this century upon the coinage of the United States?
  10. What circumstances led to the establishment of the Bank of Amsterdam and of the Bank of England respectively?
  11. What changes would be made in the subjoined accounts by,
    1. the deposit of £1,200,000;
    2. the sale of £2,000,000 of government security;
    3. new loans amounting to £3,000,000;
    4. repayment of £750,000 of loans.
  12. If the Bank of England announces an increase of its rate of discount, what is to be inferred as to the cause of this step and its probable effect?

November 12, 1857.

Issue Department.
Notes Issued £21.1 Government Securities £14.5
Coin and Bullion £6.6
£21.1 £21.1

 

Banking Department
Capital £14.5 Government Securities £9.4
Rest £3.4 Other Securities £26.1
Public Deposits £5.3 Notes
Coins		 £1.4
Other £12.9
7-day Bills £0.8
£36.9 £36.9

 

Source: Harvard University Archives. Harvard University. Examination Papers, 1873-1915. Box 2. Bound Volume Examination Papers, 1880-81. Philosophy, Political Economy, History, Fine Arts, and Music. Mid-Year Examinations, 1879-80, pp. 11-12.

POLITICAL ECONOMY 1.
Year-End Examination
1879-80

[Let the answers be given in their proper order]

  1. “If there are human beings capable of work, and food to feed them, they may always be employed in producing something.” (Book I., ch. v., §3.)
  2. When the growth of population outstrips the progress of improvements, what are the means of relief for the laborer? (Book I., ch. xiii., §3.)
  3. What is the reason why land-owners can demand rent? (Book II., ch. xvi., §1.)
  4. State the law of the value of money which governs general prices. What change is to be made in the statement, if credit is to be taken into consideration? (Book III., ch. vii., §§3, 4.)
  5. On what does the desire to use credit depend? What connection exists between the amount of notes and coin in circulation and the use of credit? (Book III., ch. xii., §8.)
  6. In what consists the benefit of international exchange? (Book III., ch. xvii., §3.) State the Law of International values. (Book III., ch. xviii., §4.)
  7. What is the effect of a depreciated currency on (1) foreign trade, and (2) the exchanges? (Book III., ch. xxii., §3.)
  8. Why should a tax on profits, if no improvements follow, fall on the laborer and capitalist? (Book V., ch. iii., §3.)
  9. What effect is produced on prices, profit, and rent by the removal of a tithe? (Book V., ch. iv., §4.)
  10. On whom does a tax on imports generally fall? (Book V., ch. iv., §6.)
  11. Give a history of the circumstances under which the first Legal Tender Act was passed. When were the other acts passed?
  12. Describe the following: (1) national bank-note; (2) five-twenty; (3) seven-thirty; (4) compound interest note; (5) certificate of indebtedness; (6) subsidiary silver coinage; (7) national bank reserve; (8) Resumption Act (briefly).

 

Harvard University Archives. Harvard University. Examination Papers, 1873-1915. Box 2. Bound Volume Examination Papers, 1880-81. Philosophy, Political Economy, History, Fine Arts, and Music. Annual Examinations, 1879-80, p. 12.

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Political Economy 2
1879-80

Enrollments and Text
Political Economy 2
1879-80

Political Economy 2. Prof. Dunbar. Mill’s Principles of Political Economy. — Financial Legislation of the United States. — Lectures. — 2 Sections; 3 Exercises per week for Students; 6 Exercises per week for Instructors.

Total 108: 10 Seniors, 83 Juniors, 13 Sophomores, 2 Unmatriculated.

Source: Annual Report of the President of Harvard College, 1879-80, page 56.

 

POLITICAL ECONOMY 2.
Mid-Year Examination
1879-80

  1. State once more and with care the reason for the following proposition: —
    “There is a distinction, more important to the wealth of a community than even that between productive and unproductive labor; — the distinction, namely, between labor for the supply of productive, and for the supply of unproductive, consumption.”
  2. What is the argument for Dr. Chalmers’s opinion that funds required for public unproductive expenditures should be raised by taxes and not by loans, and what cases are to be excepted from his reasoning?
  3. What conclusion as to the limit to the increase of production, does Mr. Mill deduce from his investigation of the laws of the increase of labor, capital and land?
  4. Why are the wages of women generally lower than those of men?
  5. Show carefully the distinction between wages, cost of labor and cost of production.
  6. Define natural value and market value and show what determines them respectively, distinguishing between the three classes into which Mr. Mill divides commodities.
  7. What effect may the great durability of gold and silver have upon the value of money at any given time?
  8. What effect has a general rise of wages upon the values of commodities?
  9. How is it shown that rent forms no part of the cost of production?
  10. The silver dollar contains 412 ½ grains of standard silver, but a dollar of silver change contains only 384 grains. On what theory is this difference of weight made?
  11. What difference has the Act of 1844, known as Peel’s act, made as to the convertibility of the notes of the Bank of England?
  12. If a serious drain of money from England, e.g., to this country, takes place, what steps will the Bank of England take, and what effect is likely to be produced on its account?
    If more convenient, this may be illustrated by using the following account: —
Issue Department.
Notes Issued £36.5 Government Securities £15.0
Coin and Bullion £21.5
£36.5 £36.5

 

Banking Department
Capital £14.5 Government Securities £16.0
Rest £3.2 Other Securities £22.0
Public Deposits £7.6 Notes
Coins

£8.0

£1.1
Other £21.5
7-day Bills £0.3
£47.1 £47.1

 

Source: Harvard University Archives. Harvard University. Examination Papers, 1873-1915. Box 2. Bound Volume Examination Papers, 1880-81. Philosophy, Political Economy, History, Fine Arts, and Music. Mid-Year Examinations, 1879-80, pp. 12-13.

 

POLITICAL ECONOMY 2.
Year-end Examination
1879-80

[Let the answers stand in your book in their proper order
Take TEN QUESTIONS, including 6, 8, 11, 12 and 13.]

  1. Why is it that “ceteris paribus, those trades are generally the worst paid, in which the wife and children of the artisan aid in the work?” (Book II., ch. xiv., §4.)
  2. If the general rate of profit falls, how will the value of commodities made by hand be affected in comparison with those made by machinery? (Book III., ch. iv., §5.)
  3. “Another of the fallacies from which the advocates of an inconvertible currency derive support, is the notion that an increase of the currency quickens industry.” (Book III., ch. xiii., §4.)
  4. Why is it that in international trade “a thing may sometimes be sold cheapest, by being produced in some other place than that at which it can be produced with the smallest amount of labor and abstinence?” (Book III., ch. xvii. §1.)
  5. What determines the values at which a country exchanges its produce with foreign countries? (Book III., ch. xviii., §8.)
  6. Suppose that a country whose exports have hitherto balanced her imports, makes an improvement which cheapens one of her articles of export, e.g. cloth. Will money flow into or out of the country? Will foreign or domestic consumers of cloth obtain the greater advantage of its cheapness? Give the reasoning on which your answers depend. (Book III., Chap. xxi., §2.)
  7. What effect does an annual payment of interest to foreign creditors have upon the imports and exports of a country? Will interest “payable in gold” necessarily cause gold to be sent out of the country? Why, or why not? (Book III., Chap. xxi., §4.)
  8. How do taxes on agricultural produce, e.g. tithes, affect landlords, farmers, and consumers, respectively, —
    1. when first laid on?
    2. when of long standing? (Book V., ch. iv. §5.)
  9. What are the arguments for and against an income tax? (Book V., ch. iii., §5.)
  10. Discuss the reasons for and against maintaining a surplus revenue for the extinction of national debt. (Book V., ch. vii. §2.)
  11. Explain the changes in the amount of greenbacks outstanding, beginning with February, 1868.
  12. State briefly the history of our gold and silver coinage, as found in the coinage acts of 1792, 1834, 1853, 1873, and 1878.
    The silver dollar contains 371 ¼ grains of silver.
  13. To what extent is the national banknote a legal tender? in what is it payable? what provision is made for its redemption? and what security is there for its ultimate payment?

 

Harvard University Archives. Harvard University. Examination Papers, 1873-1915. Box 2. Bound Volume Examination Papers, 1880-81. Philosophy, Political Economy, History, Fine Arts, and Music. Annual Examinations, 1879-80, pp. 13-14.

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Political Economy 3
1879-80

Enrollments and Texts
Political Economy 3
1879-80

Political Economy 3. Prof. Dunbar. Cairnes’s Leading Principles of Political Economy. — MacLeod’s Elements of Banking. — Bastiat’s Harmonies Économiques. — 1 Section; 3 Exercises per week for Students; 3 Exercises per week for Instructors.

Total 24: 24 Seniors.

Source: Annual Report of the President of Harvard College, 1879-80, page 56.

 

POLITICAL ECONOMY 3.
Mid-Year Examination
1879-80

  1. Give a careful and logical summary of the laws determining the values of all commodities, monopolized or free, domestic or foreign, using the corrected definition of Cost of Production. [Forty minutes.]
  2. In the case of accessory products, as, e.g. wool and mutton, what determines their normal values respectively, and what determines the course of their respective values as time goes on?
  3. In his enumeration of the causes which determine the Wages Fund, Mr. Cairnes finds himself obliged to include the rate of wages. How does he avoid the charge of reasoning in a circle?
  4. Comment on the following: —
    “The advocates of the wages-fund theory assume, first, that the capital of a country is a fixed quantity, and that the capital employed in industry is a fixed proportion of this quantity; and, secondly, that wages are paid out of that proportion of capital which is set apart for industry. Both of these propositions, in my opinion, are erroneous.
    “With regard to the first…there is no fact in Economic Science so well established as this, that capital follows profits….Capital is always forthcoming wherever there are prospects of large profits….The capital of a country, therefore, is not a fixed quantity, for if its credit is good, and sufficient inducements are offered in the shape of interest, it can readily borrow whatever it wants. For the same reason the capital employed in industry Is not a fixed quantity, and varies, not in proportion to the gross amount in the country, but in proportion to the profitableness of the industry of that country.
    “With regard to the second proposition…This is true to a limited extent only. No doubt a certain amount of capital is required for the payment of wages, just as a certain amount of capital is necessary for the purchase of raw material. There is this essential difference between the two cases, however, that while raw material is paid for (in cash or bills) before being used, wages are not paid till they have been earned….The employé, in fact, stands to his employer in the relation of a capitalist who advances him the use of his services, which services are ultimately paid for, not out of a wages-fund, but out of the produce of the services themselves.” (Outlines of an Industrial Science: by David Syme. p. 138.)
  5. Give a careful but briefly stated outline (as if written for a rather elaborate Table of Contents) of Mr. Cairnes’s reasoning as to the relations existing between the demand for commodities and the wages fund, and between prices and money-wages.
  6. What is meant by the “comparative costs of production,” on which international values are said to depend; and how is that dependence to be reconciled with the fact that any given sale of goods is found to be an independent transaction, determined by the price of the commodity.
  7. What reasoning led Mr. Cairnes in 1873 to look for a fall of prices in this country, and for possible commercial crises?
  8. What is Mr. Cairnes’s reason for believing that, in the United States, protection is not needed to secure diversity of industries?
  9. If the common saying that “the value of gold is the same all the world over” has no foundation, how does a supply of new gold distribute itself over all countries and over all commodities in each country.
  10. Stafford; Colbert; Sir J. Stewart; Quesnay.

 

Source: Harvard University Archives. Harvard University. Examination Papers, 1873-1915. Box 2. Bound Volume Examination Papers, 1880-81. Philosophy, Political Economy, History, Fine Arts, and Music. Mid-Year Examinations, 1879-80, pp. 13-14.

 

POLITICAL ECONOMY 3.
Year-End Examination
1879-80

  1. Professor Cairnes says that “the notion which prevails both here and in the United States, that the high rate of general wages obtaining in each country is a hindrance to the extension of its foreign trade, must be pronounced to be absolutely without foundation.”
    By what reasoning this this conclusion supported?
  2. How much truth is there in the maxim that “the value of gold is and must be the same all the world over”?
  3. A few years ago an American writer said, —
    “We will be able to resume specie payments when we cease to rank among the debtor nations, when our national debt is owed to our own people, and when our industry is adequate to the supply of the nation’s need of manufactured goods.”
    With what degree of justice can this be treated as a prediction verified by the events?
  4. Sherman says, —
    “During the last four years the value of our exports of merchandise has exceeded the value of our imports of merchandise $753,271,475. The excess of exports has heretofore been mainly met by the remittance to this country of American securities, but the time appears to have come when the balance of trade in our favor is to be adjusted by means of the precious metals.” — (Finance Report for 1879, p. xxxi.)
  5. It is becoming a serious problem what (English) agriculturists are to do. They will not get rents much lowered in a hurry, for land still commands a high value in the market, and is difficult to be got at all except under special circumstances. Large proprietors would rather cultivate their own land at a loss than submit to a reduction of rent telling on its value.” — (London Times, May, 1880.)
  6. Criticising Professor Cairnes’s reply to M. Alby, Sir Anthony Musgrave remarks,—
    “It is precisely because in no country are all industries equally favored by nature that Mr. Cairnes’s objection fails…. It is exactly because the favored industry in any nation requires no assistance, that it can assist the industries not so fortunate….Suppose that the high price secured by protection is rendered necessary by the onerous conditions under which native industry is tempted to work; suppose that Frenchmen, as Mr. Cairnes says are encouraged to produce iron from ores of inferior quality by the high price secured to them — what has happened? Useful iron has been extracted from ores which would have otherwise have been wasted; employment has been afforded to many who might otherwise have been idle for want of occupation; people have been fed who would otherwise have starved and as a set-off to this, some others have been obliged to smoke fewer cigars and drink less wine than they would have had money to purchase, if they had not been compelled to spend it in iron. In the absence of protection “they,” we are told,” would obtain their iron on more favorable terms at a smaller sacrifice of labor and abstinence by exchanging for it their wines and silks with England.”…Whose labor? and abstinence from what? Unfortunately the persons who have the wine and silk are not those who want the iron. The truth is, we do not want to save labor — we want to find wholesome and remunerative employment for paupers. And if the sacrifice of “abstinence” only means, as I believe it does, that riches will not accumulate so fast in the hands of capitalists — that the employers of labor will have to forego some luxuries that they may give higher wages to the laborers, and that the comforts of life may be thus more equally distributed — I cannot see much objection to this.” — (Contemporary Review, January, 1877.)
  7. “Ever half year we see summaries in the newspapers shewing that the Joint Stock Banks have in the aggregate perhaps $200,000,000 of deposits, and it is supposed that they have that quantity of money to trade with. But it is a complete and entire delusion.”
  8. How does discounting differ from the cash credit system, long practiced by the Scotch banks?
  9. State and explain Bastiat’s law of value.
  10. What is the reasoning in support of the following? —
    “A mesure que les capitaux s’accroissent, la part absolue des capitalistes dans les produits totaux augmente et leur part relative Au contraire, les travailleurs voient augmenter leur part dans les deux sens.”
  11. What is Bastiat’s theory of the value of land, and how is it reconciled with the value attaching to natural fertility?

 

Source: Harvard University Archives. Harvard University. Examination Papers, 1873-1915. Box 2. Bound Volume Examination Papers, 1880-81. Philosophy, Political Economy, History, Fine Arts, and Music. Annual Examinations, 1879-80, pp. 14-15.

Image Source: Charles F. Dunbar photographed by William Notman. Special Collections, Fine Arts Library, Harvard College Library.

Categories
Chicago Exam Questions

Chicago. Economic Theory Prelim Exam for PhD and AM, 1960

 

The economic theory  preliminary examination committee for the summer quarter of 1960 at the University of Chicago consisted of Milton Friedman (chairman), Martin J. Bailey and Lawrence Fisher. 

Previous posts with University of Chicago preliminary examinations for Ph.D. and A.M.  degrees:

Preliminary Exam (Money and Banking) 1956

Preliminary Exam (Money and Banking) 1959

Preliminary Exam (Price Theory) 1964

Preliminary Exam (Price Theory) 1969

Preliminary Exam (Macroeconomics) 1969

Preliminary Exam (Money and Banking) 1969

Preliminary Exam (International Trade) 1970

Preliminary Exam (Price Theory) 1975

Preliminary Exam (Industrial Organization) 1977

Preliminary Exam (History of Economic Thought) 1989

___________________

ECONOMIC THEORY (Old Rules)
Preliminary Examination for the Ph.D. and A.M. Degrees
Summer Quarter 1960

WRITE THE FOLLOWING INFORMATION ON YOUR EXAMINATION PAPER:

Your Code Number and NOT your name
Name of Examination
Date of Examination

Results of the examination will be sent to you by letter.
Answer all questions. Time: 4 hours.

 

  1. [22 points, 2 each] Define briefly the following terms and indicate their use in economic theory:
    1. Backward bending supply curve
    2. Giffen effect
    3. Composite demand
    4. Elasticity of substitution
    5. Exhaustion of product
    6. Marginal value product
    7. Sunk costs
    8. Rent
    9. Firm
    10. Present value
    11. Rate of time preference
  2. [10 points] Describe the cost curves for an individual firm, explaining the relation between short-run and long-run curves, average and marginal cost curve. Explain the equilibrium of the firm for various market conditions of competition.
    b. [5 points] Describe the demand curves on the part of the individual firm for factors of production under various market conditions of competition.
    c. [5 points] Demonstrate that (a) and (b) are fundamentally translations of one another.
  3. [15 points] The U.S. Steel Corporation produces about one-third of the total ingot steel production in the United States (and a similar proportion of mill shapes and other forms of steel sold to steel-using industries). If the price elasticity of demand for steel is -0.5, what is the minimum absolute value of the elasticity of demand facing the U.S. Steel Corporation? What is the maximum absolute value? What can you conclude, without further information, about the monopoly power of the U.S. Steel Corporation? What further information, if any, would be relevant, and why?
  4. It is sometimes alleged that unionized firms are not injured by competition with non-union firms in the same industry because the presence of the union wage scale and working conditions enables the firm to obtain better quality labor, to have better labor morale and labor relations, etc.
    1. [10 points] Analytically, are these arguments well-founded? Discuss.
    2. [10 points] What data would you need on union and non-union firms to confirm or reject these arguments as an empirical proposition? In particular, would you use comparative output per man-hour, unit labor costs, or what? Why one and not another?
  5. A consumer buys in perfectly competitive markets, spending all of his income. Over a period of time his income changes and prices change, but it is our hypothesis that his tastes do not change.
    1. [10 points] Assuming no price-income situation was every exactly repeated, what possible behavior on his part, if any, could contradict our hypothesis? Why?
    2. [10 points] If the hypothesis is not contradicted, and if we then assume it to be correct, can we also assume that his indifference curves are everywhere convex to the origin? What possible behavior on his part, if any, could contradict the assumption of convexity to the origin? Why?
  6. [15 points] What are Marshall’s four propositions on derived demand? What subsequent contributions have been made concerning these propositions? In the light of these contributions, how would the propositions now be correctly and fully stated?
  7. [20 points] Write a brief essay on TWO of the following men and their contributions to economics:
    1. Hume
    2. Dupuit
    3. Von Thünen
    4. Menger
    5. Jevons
    6. Edgeworth
    7. Taussig
    8. Mitchell

 

Source: Hoover Institution Archives. Milton Friedman Papers. Box 76, Folder 2 “University of Chicago ‘Economic Theory’”.

Image Source: Milton Friedman. University of Chicago Photographic Archive, apf1-06238, Special Collections Research Center, University of Chicago Library.

Categories
Economists Exam Questions Harvard

Harvard. Exams for Economic Theory and Monetary Economics. R.G. Hawtrey, 1928-29

 

 

Sir Ralph Hawtrey (Fun fact: according to J.M. Keynes,  Alfred Marshall was his third cousin once removed) was given leave by the British Treasury to lecture at Harvard during the 1928-29 academic year. Full course outlines with assigned readings are not found in the Harvard University Archives collection of course syllabi and reading lists. Only the titles of the items for the end of semester reading periods for his graduate course “Principles of Money and Banking” could be found and are transcribed below. The first semester exam for “Problems in Economic Theory” and both semester exams for “Principles of Money and Banking” are included in this post.

_____________________

Problems in Economic Theory

Course Announcement.

[Economics] 15. Problems in Economic Theory

Mon., Wed., Fri., at 4. Mr. R. G. Hawtrey.

In this course less attention will be given to specific economic doctrines than to questions of the scope, methods, premises, and goal of economic science, and of its relations to logic and psychology and to the other social sciences.

Source: Division of History, Government, and Economics, 1928-29. Published in Official Register of Harvard University, Vol. XXV, No. 29 (May 26, 1928), p. 71.

*  *  *  *  *  *  *  *  *  *  *  *

Enrollment.

[Economics] 15. Mr. Hawtrey.— Problems in Economic Theory.

Total 6: 3 Graduates, 1 Senior, 2 Radcliffe.

Source: Harvard University. Report of the President of Harvard College, 1928-29, p. 72.

*  *  *  *  *  *  *  *  *  *  *  *

1928-29
HARVARD UNIVERSITY

ECONOMICS 15
Mid-year examination

Five questions and ONLY FIVE should be answered

  1. How does the functioning of a market depend on dealers holding stocks of the goods dealt in?
  2. By what process does the investment market maintain equilibrium between the supply of savings and the supply of fresh capital?
  3. Jevons wrote: “By free capital I mean the wages of labour either in its transitory form of money or in its real form of food and other necessaries of life.”
    Is this an improvement on the Wages fund theory? Can you improve the statement further?
  4. Explain the relation of profit to (1) compensation for risk, (2) rent of ability, (3) quasi-rent.
  5. Why is the explanation of profit as the remuneration of management and organization incomplete?
  6. What are the chief objections to the doctrine that the end of economic activity is the maximum of total utility?
  7. Can justice in distribution be regarded as a part of the subject-matter of economics?

Source: Harvard University Archives. Mid-year examinations, 1852-1943. Box 11, Bound volume Examination Papers, Mid-Years, 1929. Papers printed for Mid-year Examinations in History, New Testament,…Economics,…Military Science, Naval Science, January-February, 1929.

*  *  *  *  *  *  *  *  *  *  *  *

DEPARTMENT OF ECONOMICS
SPRING READING PERIOD—1928/29

Economics 15

No additional assignments.

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. Box 2. Folder “Economics 1928-29”.

_____________________

Principles of Money and Banking

Course Announcement.

[Economics] 38. The Principles of Money and Banking

Tu., Th., at 10, and a third hour at the pleasure of the instructor. Mr. R. G. Hawtrey.

The course is intended to afford training in analysis and research in the field of money and banking. The subject as a whole will be systematically reviewed. Selections from important writings dealing with monetary principles will be read and critically discussed.

Source: Division of History, Government, and Economics, 1928-29. Published in Official Register of Harvard University, Vol. XXV, No. 29 (May 26, 1928), p. 73.

*  *  *  *  *  *  *  *  *  *  *  *

Enrollment

[Economics] 38. Mr. Hawtrey. — Principles of Money and Banking.

Total 50: 32 Graduates, 10 Seniors, 1 Junior, 5 Radcliffe, 2 Others.

 

Source: Harvard University. Report of the President of Harvard College, 1928-29, p. 73.

*  *  *  *  *  *  *  *  *  *  *  *

DEPARTMENT OF ECONOMICS
MID-YEAR READING PERIOD—1928/29

Economics 38

Select two from the following list and read about 300 pages.

  1. Keynes, J.M.: Indian Currency and Finance.
  2. Burgess, W. R.: The Federal Reserve System and the Money Market.
  3. Hargreaves, E. L. : Restoring Currency Standards.
  4. Knapp: State Theory of Money.

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. Box 2. Folder “Economics 1928-29”.

*  *  *  *  *  *  *  *  *  *  *  *

1928-29
HARVARD UNIVERSITY

ECONOMICS 38
Mid-year examination.

Six questions and ONLY SIX should be answered.

  1. What different meanings can be given to “velocity” in monetary theory?
  2. On what conditions can the use of gold coin be made to maintain a gold standard effectively?
  3. What are the essential functions of a bank? To what extent do they depend on the assignability of debts from one creditor to another?
  4. Why does a contraction of credit tend to cause unemployment?
  5. What circumstances determine the degree of sensitiveness of borrowers to the rate of discount or short-term interest?
  6. Upon what conditions does the power of a Central Bank to control credit depend? Is the issue of notes by the Central Bank essential?
  7. Describe the effect of external investment on the foreign exchange market.
  8. In what circumstances and to what extent will relatively high rates of discount and short-term interest attract balances from abroad for temporary investment.
  9. What is meant when London is called an international clearing centre?

Source: Harvard University Archives. Mid-year examinations, 1852-1943. Box 11, Bound volume Examination Papers, Mid-Years, 1929. Papers printed for Mid-year Examinations in History, New Testament,…, Economics,…Military Science, Naval Science, January-February, 1929.

*  *  *  *  *  *  *  *  *  *  *  *

DEPARTMENT OF ECONOMICS
SPRING READING PERIOD—1929

Economics 38

Select two from the following list and read about 300 pages.

  1. Keynes, J.M.: Indian Currency and Finance.
  2. Burgess, W. R.: The Federal Reserve System and the Money Market.
  3. Hargreaves, E. L. : Restoring Currency Standards.
  4. Knapp: State Theory of Money.

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. Box 2. Folder “Economics 1928-29”.

*  *  *  *  *  *  *  *  *  *  *  *

1928-29
HARVARD UNIVERSITY
ECONOMICS 38

Final examination.

Five questions and only five to be answered.

  1. Explain the advantages and disadvantages of the “elasticity” claimed for the fixed proportion system of gold reserve.
  2. How far is it true to say that gold reserve laws “exist to be broken”?
  3. To what extent can the phenomena of the business cycle, as experienced up to 1914, be traced to the working of the gold standard?
  4. What are the principal conditions likely to predispose a country to be the scene of a financial crisis?
  5. Compare, in respect of relative liquidity, the principal classes of assets usually held by banks. Criticise the idea of the “self-liquidating” bill.
  6. Show how speculation in the foreign exchanges may interfere with measures for the reestablishment of the gold standard in a country with an unstable currency.
  7. What grounds are there for supposing that it is practicable, through the coöperation of the central banks of gold standard countries to affect the purchasing power of gold?
  8. How, in your opinion, can the stability of the purchasing power of a currency unit best be tested statistically?

Source: Harvard University Archives. Bound volume (No. 71) Examination Papers, Finals, 1929. (Papers printed for Final Examinations in History, Church History,… , Economics,…, Military Science, Naval Science, June, 1929.

Image Source: Creative Commons image of Sir Ralph George Hawtrey by Walter Stoneman (1939) at the National Portrait Gallery.

 

Categories
Exam Questions Minnesota Suggested Reading Syllabus

Minnesota. Readings and Final Exam for National Income and Wealth. Friedman, 1946

 

 

The course materials transcribed for this post are found in a folder in Milton Friedman’s papers at the Hoover Institution with the label “University of Chicago. Econ 129”. The handwriting on the folder is that of an archivist (i.e. not Friedman) and the material in the folder is neither dated nor can the name of the university be found. The most recent publication included in the reading list is from February 1946 (“Recent Figures…”). Also there is an item in the reading list “Blakey et al., Analyses of Minnesota Incomes, Parts One and Two” that points to the state of Minnesota. Milton Friedman did teach economics and statistics at the University of Minnesota for the academic year 1945-46 and no graduate course at the University of Chicago had a course number in the 100’s. Further, the academic calendar in Minnesota, like Chicago, followed a quarter system. Thus it seems almost certain that we are dealing with a course that Milton Friedman taught at the University of Minnesota during the latter quarters of the 1945-46 academic year. I don’t have access to the course catalogue from Minnesota for that year, so this should be easy to verify conclusively down the road.

*  *  *  *  *  *  *  *  *  *  *  *

O-M [typed in the upper left corner]

Description of proposed course in “Statistical Economics”

  1. Purpose: The course proposed is designed primarily to provide training in the quantitative analysis of economic problems. As a by-product it should also acquaint the student with some coherent body of quantitative data and some important empirical studies.
  2. Content: The emphasis in the course would be on research method: the utilization of statistical data, statistical method, and theoretical analysis to attack an economic problem. The approach to method would be via substantive empirical work in particular fields. The fields considered would shift from quarter to quarter.

For the first quarter, it is proposed to consider.

National Income and Wealth: concepts of income and wealth—problems of valuation, treatment of government contribution and of gifts, capital gains, and other borderline items; problems of measurement—techniques of measurement, sources of data, estimates for segments of the economy for which data are scanty, precision of estimates; distribution of income by industry, type of payment, final product, and region; distribution of income and wealth by size; uses and misuses of income and wealth data.

Basic text material: Simon Kuznets, National Income and its Composition; Studies in Income and Wealth; Consumer Incomes in the United States; Department of Commerce publications and British white papers on national income.

For subsequent quarters, possible topics are:

Secular movements: Statistical studies of long-run changes in economic activity in the United States; examination of evidence bearing on “mature economy” or “stagnation” thesis.

Economies of scale: Empirical work on the relation of the size of enterprises to their economic efficiency, including conceptual problems in measuring economic efficiency and in distinguishing private from social economics of scale, statistical derivation of cost curves, and studies of profits in relation to size of enterprise.

  1. Potential students: Seniors and graduate students, particularly those interested in economic research
  2. Prerequisites: B.A. 101-102; B.A. 112. Undergraduates with consent of instructor..
  3. Duration: One quarter.

*  *  *  *  *  *  *  *  *  *  *  *

Syllabus and Readings for
Economics 129: Statistical Economics

Topic: National Income and Wealth

Note: Starred readings are required; others are recommended.

  1. Recent figures on National Income and National Products

*Survey of Current Business, February 1946, pp. 4 to 9.

  1. Concepts of National Income and Wealth

General:

*Hicks and Hart, pp. 125-232.
Kuznets, National Income and Capital Formation, pp. 1-7.
*Kuznets, National Income and its Composition, pp. 1-60.
*Hicks, Value and Capital, pp. 171-181.
Studies in Income and Wealth, Vol. II, pp. 1-82; *Vol. III, Preface (vii-xv).
J.E. Meade and R. Stone, “The Construction of Tables of National Income, Expenditure, Savings and Investment”, Economic Journal, June-Sept., 1941, pp. 216-33.

Capital gains:

Studies in Income and Wealth, Vol. I, pp. 97-101, 159-62.

Government Services:

Studies in Income and Wealth, Vol. Two, pp. 317-27; Vol. Six, pp. 1-44.
J.R. and U.K. Hicks, “Public Finance in the National Income”, Review of Economic Studies, Feb. 1939, pp. 147-55.

  1. Concept of Gross National Product

*Gilbert and Jaszi, “National Product and Income Statistics”, Dun’s Review, 1944

  1. Measurement

*Kuznets, National Income and its Composition I, pp. 96-132, Vol. II, pp. 475-537.

  1. Correction for Price Change

*Keynes, Treatise on Money, Vol. I, pp. 95-120.
Studies in Income and Wealth, Volume II, pp. 85-135.

  1. Temporal changes in National income in the United States

*Kuznets, National Income and its Composition, pp. 135-160.
Kuznets, National Income and Capital Formation, pp. 8-11.

  1. British estimates

*British White Paper Cmd. 6623. (Reprinted in Federal Reserve Bulletin, August, 1945).

  1. Distributions of income

1.  By Industry

Kuznets, National Income and Capital Formation, pp. 12-22.
*Kuznets, National Income and its Composition, pp. 161-214.

2. By type of payment

Kuznets, National Income and Capital Formation, pp. 23-28.
*Kuznets, National Income and its Composition, pp. 215-265.

3. By Final Product

Kuznets, National Income and Capital Formation, pp. 34-57.
*Kuznets, National Income and its Composition, pp. 266-291.

4. By region

F. Schwartz, “State Income Payments in 1944”, Survey of Current Business, August 1945.

5. By size

*National Resources Committee, Consumer Incomes in the United States.
Studies in Income and Wealth, Volume V, Income Size Distributions, Part I, pp. 1-98.
Blakey et al., Analyses of Minnesota Incomes, Parts One and Two.

 

Economics 129: Statistical Economics
Books on Reserve

Main Library

R.G. Blakey, Wm. Weinfeld, J.E. Dugan, A.L. Hart, Analyses of Minnesota Incomes, 1938-39.
Clark, Colin, The Conditions of Economic Progress.
Clark, Colin, National Income and Outlay.
Fabricant, Solomon, Capital Consumption and Adjustment.
Hicks, J.R., Value and Capital.
Keynes, J.M., A Treatise on Money.
Kuznets, Simon, National Income and Capital Formations.
Kuznets, Simon, National Income and its Composition (2 Volumes).
W.C. Mitchell, W.I. Kerg, F.R. Macauley, and O.W. Knauth, Income in the United States (2 volumes).
Conference on Research in Income and Wealth, Studies in Income and Wealth, Volumes I, II, III, V, VI.
National Resources Committee, Consumer Incomes in the United States.

Materials Room

Barger, Harold, Outlay and Income in the United States, 1921-38.
J.R. Hicks and A.G. Hart, The Social Framework of the American Economy.
Kuznets, Simon. National Income and its Composition.
Martin, R.F., National Income in the United States, 1799-1938.
Conference on Research in Income and wealth, Studies in Income and Wealth, Vol. V, Part I.

 

*  *  *  *  *  *  *  *  *  *  *  *

Final Examination
Economics 129—Statistical Economics

The Income payments concept differs from national income in part…

  1. T or F…because the former excludes and the latter includes undistributed corporate profits;
  2. T or F …because relief benefits are included in the former and excluded from the latter;
  3. T or F …because food consumed on the farm is excluded from the former and included in the latter;
  4. T or F …because imputed rents are excluded from the former and included in the latter;
  5. T or F …and because social security taxes are excluded from the former and included in the latter.
  6. T or F Imputed rents are not included in the Department of Commerce estimates of national income but are include in Kuznets.
  7. T or F In a self-contained economy without government national income would equal gross national product.
  8. T or F In Commerce Department estimates the value of government product is measured by taxes except for education.
  9. T or F “Transfer payments” are gifts from one individual to another.
  10. T or F A major difference between national income and gross national product is dividend payments to foreigners.
  11. T or F The growth of Victory gardens was in part responsible for the rise of national product from 1940 to 1943.
  12. T or F Undistributed corporate profits plus individual savings equals net capital formation plus government deficit.
  13. T or F Product of non-profit institutions is valued at cost in national product.
  14. T or F Government savings in Kuznets’ estimates is measured by excess of receipts over expenditures.
  15. T or F Business taxes includes all taxes paid by business except excess profits taxes.
  16. T or F Capital outlays charged to current expense are items of fixed capital that become obsolete within the year.
  17. T or F Business savings are equal to undistributed profits plus expenditures on plant and equipment.
  18. T or F The adjustment for inventory revaluation is designed to eliminate changes in value due to spoilage, change of style, and fire losses.
  19. _____ Which of the following was not an important factor in our economic mobilization for war? [choose “a”, “b”, “c”, or “d”]
    (a) Curtailment of gross capital formation
    (b) Curtailment of consumers non-durable goods expenditures
    (c) Increase in average hours worked per week
    (d) Heavy government expenditures for plant and equipment
  20. T or F The basic source of profits estimates in the national income is Statistics of Income.
  21. T or F The method used to derive estimates of wages in manufacturing is number of employed multiplied by average wages.
  22. T or F Advertising is treated as investment in the national product.
  23. T or F In estimating wages allowance is made for expenses involved for transportation to and from work.
  24. T or F Gross capital formation includes all automobiles produced but no other consumers durable goods.
  25. T or F Capital gains and losses are not allowed for in the national income except in the case of security and commodity brokers.
  26. T or F Subsistence of the armed forces is included in the national income because war expenditures are in essence a type of capital formation.
  27. T or F National debt interest is included in the national income because of Hamilton’s theory that the debt would strengthen the union.
  28. T or F The British include interest on the national debt as a measure of the services of government property.
  29. T or F Income payments to individuals could be derived entirely by adding up income reported for tax purposes if everyone were required to file a return.
  30. T or F Size distribution of income must be based upon income payments rather than national income.
  31. T or F Intermediate government products are products on the borderline between current services and capital goods.
  32. T or F Income from illegal activities is excluded from the national income.

Given the following items:

Wages and salaries 100
Supplements to wages and salaries 3
Transfer payments (net) 4
Lend-lease shipments 10
Profits before dividends 8
Dividends 4
Interest on the national debt 2
Interest and rent 7
Business taxes 25
Income of proprietors 24
Imputed return on govt. property 1 1
Personal taxes 18
Depreciation 8
Consumers expenditures 90
Net capital formation 3
Savings bond sales 12
Subsistence to armed forces 10

33, 34, 35. _________ State amount of National Income.

36, 37, 38. _________ State amount of income payments

39, 40, 41. _________ State amount of gross national product

42, 43, 44. _________ State amount of individual savings

45, 46, 47. _________ State amount of Govt. expenditure for goods and services

48, 49, 50. _________ State amount of total government expenditures.

51, 52, 53. _________ State amount of government deficit.

  1. T or F Wealth is measured as a stock at a point in time while income is measured as a flow over a period of time.
  2. T or F Capital formation consists of all business purchases of producers goods except additions to inventory of finished consumption goods.
  3. _____ The gross national product for any year will consist of all the following items except [list all the items that are not included]—

(a) sales of single use consumer goods
(b) sales of single use producers goods
(c) change in business inventories
(d) sales of durable use consumers goods
(e) sales of durable use producers goods
(f) sales of consumers services
(g) sales of producers services

  1. T or F Omitting imputed rents from the national income results in too high an estimate of savings.
  2. T or F A gun purchased by a gangster is not included in the national product because it is for use in illegal activities.
  3. T or F Capital formation tends to fluctuate more widely over the business cycle than consumers expenditures.
  4. T or F In Kuznets’ estimates national income equals net national product.

*  *  *  *  *  *  *  *  *  *  *  *

Answer Key

  1. True;
  2. True;
  3. False;
  4. False;
  5. True;
  6. True;
  7. False;
  8. False;
  9. False;
  10. False;
  11. False;
  12. True;
  13. True;
  14. False;
  15. False;
  16. False;
  17. False;
  18. False;
  19. (b);
  20. True;
  21. False;
  22. False;
  23. False;
  24. False;
  25. True;
  26. False;
  27. False;
  28. False;
  29. False;
  30. True;
  31. False;
  32. True;

33/34/35. = 100+3+8+24+7=142;
36/37/38. = 142+4–4=142;
39/40/41. = 142+8+25=175;
42/43/44. = 142 – 18 – 90 = 34;
45/46/47. = 175–90–(3+8)  = 74;
48/49/50. =175–90–(3+8) +4 =78;
51/52/53. = 78 – 25 – 18 =35

  1. True;
  2. False;
  3. (b),(g);
  4. False;
  5. False;
  6. True;
  7. True.

Source: Hoover Institution Archives. Papers of Milton Friedman, Box 76, Folder 5 “University of Chicago [sic], Econ 129”.

Image Source: Columbia University, Columbia 250 Celebrates Columbians Ahead of Their Time.

Categories
Exam Questions Harvard

Harvard. Exams for Undergraduate and Graduate Money and Banking. Williams, 1932-33.

John Henry Williams taught the money and banking/monetary policy courses at Harvard over several decades. Material for more years will be transcribed soon! This post takes us to the trough of the Great Depression. Joseph Schumpeter and Lauchlin Currie joined in teaching the undergraduate course this one time.

 

Principles of Money and Banking (graduate course, 1946-47)

Economics 141a, Reading Assignments and Exam (co-taught with Alvin Hansen) 1946-47

Economics 141b, Reading Assignments and Exam (co-taught with Richard Goodwin) 1946-47

Economics 141, thirteen pages of general course bibliography, 1946-47

________________________

Brief Undergraduate Course Description

[Economics] 3. Money, Banking, and Commercial Crises

Mon., Wed., Fri., at 2. Professor Williams.

The course will be conducted by means of lectures and discussions and (in the second half-year) a thesis based on work in the library. Certain subjects, such as the monetary and banking history of the United States, will be covered almost wholly by assigned reading.

Source: Division of History, Government, and Economics, containing an Announcement for 1932-33. Official Register of Harvard University, Vol XXVII, No. 51 (August 15, 1940), pp. 72, 81.

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Enrollment

[Economics] 3. Professor Williams and Schumpeter and Dr. Currie — Money, Banking, and Commercial Crises.

Total 151: 32 Seniors, 103 Juniors, 8 Sophomores, 1 Freshman, 7 Others.

Source: Harvard University. Report of the President of Harvard College, 1932-33, p. 65.

 

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1932-33
HARVARD UNIVERSITY

ECONOMICS 3

Money, Banking and Commercial Crises
Mid-year Examination, 1933

  1. Combined Statement of the Federal Reserve Banks

($000,000 omitted)

Sept. 1931

 Feb. 1933

June 1932
Total Reserves

3371

 3211

2844
Bills Discounted

328

 828

440
Bills bought

469

 109

67
U.S. Securities

742

 740

1784
Other Federal Reserve Securities

39

 31

19
Federal Reserve Notes

2098

 2651

2795
Member Bank Deposits

2364

 1849

1982
Government Deposits etc.

143

 76

34

Discuss the significance of the changes in each of the above items between September, 1931, and February, 1932, and between February, 1932, and June, 1932. How do you account for the changes in member bank deposits with the reserve banks? What conclusions do you draw regarding Federal Reserve policy in the two periods covered by the above statement?

  1. In how far do the Federal Reserve Act and Federal Reserve policy reveal an acceptance of the commercial loan theory of banking?
  2. Trace the evolution of the bank note in (a) the United States, (b) England, (c) Germany or What are the merits and defects of our present system and how could it be improved?
  3. Discuss one of the following:
    1. Burgess’ “Gold Paradox.”
    2. American Experience with bimetallism.

Source:  Harvard University Archives. Mid-year examinations, 1852-1943. Box 10. Folder “Mid-year examinations, 1932-1933.”

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1932-33
HARVARD UNIVERSITY

ECONOMICS 3

Money, Banking and Commercial Crises
Final Examination, 1933

  1. Explain the equation P=\frac{E}{O}+\frac{{I}'-S}{R}. Can the course of business during the past five years be interpreted in terms of this equation?
  2. “A managed standard is incompatible with a world standard.”
    “Avoidance of monetary disturbances can be achieved only under a managed standard.”
  3. Compare the effects of
    1. Purchase of one billion dollars of securities b the Reserve Banks.
    2. Redemption of one billion dollars of government bonds by the issue of paper money.
    3. Reduction of the gold content of the dollar by one-hald.
    4. Adoption of bimetallism.
  4. Can the concepts of demand and marginal utility be applied in an explanation of the value of money?
  5. Is business stability compatible with stable prices? Compare the views of Foster and Catchings, Keynes and Hayek on this point.

Source: Harvard University Archives. Harvard Univ. Examination Papers. Finals, 1933. (HUC 7000.28) Volume 75. Papers Printed for Final Examinations. History, History of Religions,…, Economics,…, Military Science, Naval Science. January-June, 1933.

 

*  *  *  *  *  *  *  *  *  *  *  *

Brief Graduate Course Description

[Economics] 38. Principles of Money and Banking

Tu., Th., at 3, and a third hour at the pleasure of the instructor. Professor Williams.

This course is intended to afford training in analysis and research in the field of money and banking. The subject as a whole will be systematically reviewed. Selections from important writings dealing with monetary principles will be read and critically discussed. Particular attention will be given to the theory of the value of money and to the policy and operations of central banks.

Source: Division of History, Government, and Economics, containing an Announcement for 1932-33. Official Register of Harvard University, Vol XXVII, No. 51 (August 15, 1940), pp. 72, 81.

*  *  *  *  *  *  *  *  *  *  *  *

Enrollment

[Economics] 38. Professor Williams and Schumpeter. — Principles of Money and Banking.

Total 61: 36 Graduates, 16 Seniors, 1 Juniors, 5 Radcliffe, 3 Others.

Source: Harvard University. Report of the President of Harvard College, 1932-33, p. 66.

*  *  *  *  *  *  *  *  *  *  *  *

1932-33
HARVARD UNIVERSITY

ECONOMICS 38
Principles of Money and Banking
Mid-year Examination, 1933

[copy not yet recovered]

*  *  *  *  *  *  *  *  *  *  *  *

1932-33
HARVARD UNIVERSITY

ECONOMICS 38
Principles of Money and Banking
Final Examination, 1933

  1. Discuss “Hayek concludes…that the necessary condition of avoiding credit cycles is for the banking system to maintain the effective quantity of money…absolutely and forever unaltered.”
    Is this a correct interpretation of Hayek? Just what is involved, in the way of central bank action, in a “neutral” money policy? Would you favor such a policy?
  2. Discuss:
    1. The concept of international equilibrium.
    2. The mechanism of adjustment of departures from equilibrium under conditions of gold standard.
    3. The relation of gold standard to central banking.
  3. Discuss the effects of:
    1. A devaluation of the dollar relative to the pound sterling and the franc.
    2. An all-round devaluation of currencies.
    3. An all-round abandonment of the gold standard or of any other mechanism for providing stability of exchanges.
    4. The proposal to widen the zone between gold points to five per cent.

Source: Harvard University Archives. Harvard Univ. Examination Papers. Finals, 1933. (HUC 7000.28) Volume 75. Papers Printed for Final Examinations. History, History of Religions,…, Economics,…, Military Science, Naval Science. January-June, 1933.

Image Source:  John Henry Williams in the Harvard Album, 1932.

 

Categories
Exam Questions Gender Harvard Radcliffe

Harvard. Examination for Women. Political Economy (Optional Advanced Exam), 1874

 

During a recent visit to the Harvard archives I was frustrated when I found that in a volume with the title “Examinations for Women” that pages for advanced examinations, of which political economy would have been one according to an overview of the examinations, had been ripped out. Perhaps an advantage of our age of easy photocopying is that such acquisatory vandalism in libraries has been significantly reduced. Today I thought I would trawl the net and see if I could find any Harvard political economy exams for women in the days before there was even a Radcliffe.  Following an excerpt from a U.S. Bureau of Education report and a New York Times account (the examination questions are “far too hard”), Economics in the Rear-view Mirror is happy to provide a transcription of the questions for the advanced examination in political economy for 1874.

Political Economy exams for the Harvard men of this period have been posted earlier.

_________________________

HARVARD’S EXAMINATION FOR WOMEN

This was originally intended as a careful test of proficiency in a course of elementary study of a liberal order, arranged for persons who might, or might not, afterwards pursue an advanced curriculum of studies. It differed, therefore, both in its purpose and in its selection of subjects from any college examination, whether for admission or for subsequent standing. But it applied the highest standard of judgment in determining the excellence of the work offered. It furnished a test of special culture in one or more of five departments. It was not intended to be taken as a whole, and did not, therefore, represent the studies of a college course, but was adapted to persons of limited leisure for study, such as girls who had left school and were occupied with home cares, or teachers engaged in their professional labors.

In Scribner’s Monthly for September, 1876, the purposes of the new movement are set forth, and an idea given of the reception which has been accorded it. The writer says:

Harvard has undertaken to do for this country what Oxford and Cambridge are doing for England;

and he might have added, “and Edinburgh for Scotland.” Its faculty held examinations for women at Cambridge first in June, 1874, 1875, and 1876. In 1874 Harvard gave only four certificates; in 1875 only ten candidates entered, and in 1870 only six. In the latter year it was decided that examinations should be held also in New York. A local committee was formed there, with Miss E. T. Minturn as secretary. This committee went to work at once to procure candidates for examination after the manner pursued in England, on the establishment of a new center, and met with much encouragement.

The examination took place in June of 1877. The examinations (held in a private house, or in some room hired by the committee) were almost entirely in writing. No one was permitted to be present but ladies of the local committee, and a representative officer from the university, who brought the question papers, took the answers as soon as the time allowed for each paper had expired, and carried the answers at the close of the examinations back to the university, when they were inspected by the examiners and reported upon to the candidates through the local committee. This is the English mode of proceeding.

The examination, as in the preceding years, was of two grades. The first was a preliminary examination for young women who were not less than 17 years old; the second an advanced examination for those who had passed the preliminary examination and who were not less than 18 years old. The preliminary examination embraced English literature, French, physical geography, with elementary botany, or elementary physics, arithmetic, algebra through quadratic- equations, plane geometry, history, and any one of three languages — German, Latin, or Greek. The advanced examination was divided into five sections, in one or more of which the candidate could present herself:

(1) Languages. In any of the following: English, French, German. Italian, Latin, or Greek.

(2) Natural science. In any of the following: Chemistry, physics, botany, mineralogy, and geology.

(3) Mathematics. Solid geometry, algebra, logarithms and plane trigonometry, and any one of the three following : Analytic geometry, mechanics, spherical trigonometry, and astronomy.

(4) History. For the first year, 1876, candidates could offer either of the two following: The history of Continental Europe during the period of the Reformation, 1517-1648; or English and American history from 1688 to the end of the eighteenth century.

(5) Philosophy. Candidates might offer any three of the following: Mental philosophy, moral philosophy, logic, rhetoric, political economy.

Notice of intention to be candidates must be sent to the secretaries on or before April 1 preceding the examination. The fee for the preliminary examination was $15, for the advanced examination $10.

At the New York examination, referred to above, 18 candidates presented themselves, and the examination lasted a week, and was under the conduct of Professor Child. With the exception of a short oral exercise to test pronunciation of the modern languages, the examination was wholly in writing.

The committee were careful to lay stress upon the fact that they did not consider the preparation for these examinations equivalent to a course in Harvard, or other first-class colleges, and that they did not place the same value on a Harvard diploma and a Harvard certificate.

These examinations have now become a part of the regular work of the university, and are held every year simultaneously in New York and Cambridge (or Boston), in Philadelphia, and in Cincinnati, beginning on the last Wednesday in May. Since 1879 instruction as well as examination has been provided for by a new organization incorporated under the name of the “Society for the Collegiate Instruction of Women by Professors and other Instructors of Harvard College.”

The first intimation of this movement for the private instruction of women by professors of Harvard University was made in a circular signed by the seven ladies who became the first managers of the annex, and was dated Washington’s Birthday, 1879.

The terms of the circular were somewhat vague, but they were taken as evidence that privileges which had before been the right of men only were to be offered to women. The intention of the promoters of the scheme was, in fact, to provide for women, outside of the college, instruction of the same grade that men receive in it, united to tests of progress as rigid as those which are applied in the college.

The next step was the publication of a circular, giving the terms of admission to the courses of instruction to be offered the first year. This was done in April. The Harvard examinations for women being in successful operation, they were made the basis upon which fitness for ad mission was to be determined.

Upon the eighth examination held in Cambridge, New York, and Cincinnati, June 30, 1881, in accordance with the wishes of the Woman’s Educational Association, the candidates who presented themselves for examination were examined upon the subjects required for admission to Harvard College, with the exception, that the candidate could, if she chose, substitute French and German in place of Greek. The time and method of examinations and the papers used were the same as for the examination for admission to Harvard College, and the same privilege of passing a preliminary examination on a part of the subjects and of completing the course in a subsequent year was allowed.

Certificates were given, bearing the signature of the president, and specifying the subjects in which the candidate had passed.

The old order of examinations was then abolished except for such candidates as had passed on a part of the work required. The Woman’s Educational Association took charge of the examination in Cambridge, and local committees had charge of the examinations in New York, Philadelphia, and Cincinnati. The certificate given to a candidate who passes upon all the subjects required for admission to the college entitles her to admission to the courses of instruction given in Cambridge by instructors in Harvard University, under the direction of the Society for the Collegiate Instruction of Women. It is also accepted, if presented within a year of its date, by Vassar, Wellesley, and Bryn Mawr Colleges as the equivalent for examinations in such subjects, whether preparatory or collegiate, as are covered by it.

Source: United States Bureau of Education. Circular of Information No. 6, 1891. George Gary Bush, History of Higher Education in Massachusetts, pp. 176-178. [No. 13 in Contributions to American Educational History, edited by Herbert B. Adams]

 

HARVARD EXAMINATIONS FOR WOMEN
from a New York Times report in 1877

…The objects specially held in view by the ladies who have promoted this movement were to afford persons desirous of becoming teachers in schools such a diploma of competency for their task as would be received on all hands with respect, and, further, to promote a higher standard of attainments in the private schools attended by the wealthier classes, by thus securing them thoroughly qualified teachers. The radical defect in women’s education generally, more especially in the case of women educated at a fashionable school, is, that while they have a smattering of many subjects, they do not know one thoroughly….

…At present it appears to us that the questions are far too hard…

…[the illustrative questions cited from physical geography and history] are merely in the “preliminary” examination, and surely are well calculated to convey a lively apprehension as to the stiffness of the queries to follow; and we are not, therefore, surprised to read in the report that only three of the eighteen New-York candidates took up the whole number of subjects required for a certificate, and that of these, but two were successful.”

Source: The New York Times, December 30, 1877, p. 6.

_________________________

HARVARD UNIVERSITY.
EXAMINATIONS FOR WOMEN, 1874.

ADVANCED EXAMINATION. POLITICAL ECONOMY.

The examination will be based on Fawcett’s “Manual of Political Economy” [1874] and Blanqui’s “Histoire de l’Économie Politique en Europe.” [4e èd. Rev. et annot. (1860). Tome Premier; Tome Second]

SPECIMEN EXAMINATION-PAPER.

I. Fawcett’s Manual.

  1. Define, with illustrations, Wealth, Capital, and Money; and state the distinctions between them.
  2. How is the rapid recovery of a country from a devastating war explained?
  3. Define and distinguish Value and Price.
  4. What causes regulate the price of articles of vertu, of agricultural produce, and of manufactured articles respectively?
  5. Explain Ricardo’s theory of rent, the law of production from land on which it rests, and how the conclusion is drawn that agricultural rent is not a component of price.
  6. What causes the tendency of profits to fall as a nation advances?
  7. What principles determine the rate of wages, and what remedies are suggested for low wages?
  8. State the distinction between industrial partnership, complete coöperation, and the coöperative store; and explain the system of the Rochdale Pioneers and its advantages.
  9. What arguments can you give for or against peasant proprietorship?
  10. What effect have the discoveries of gold in California and Australia had on the value of gold, and what has tended to counteract that effect in England and the United States?
  11. What will determine the amount of money which a country will keep in circulation?
  12. “What will happen if the circulating medium is increased beyond its natural amount, by the introduction (1) of more gold or silver? or, (2) of bank notes which are redeemed in gold on presentation? or, (3) of inconvertible notes?
  13. Do the United States gain or lose by the constant exportation of the gold mined in California; and why?
  14. Can two countries trade with each other profitably, when every commodity exchanged might be produced by one cheaper than by the other?
  15. In the example given of an exchange of iron and wheat by England and France, what will be the effects of an improvement which cheapens the production of iron in England?

II. Blanqui’s Histoire de l’Économie Politique en Europe.

  1. Give the names and geographical positions of some of the chief of the Hanseatic cities, and briefly explain their rise and the organization of their trade.
  2. What important changes took place in the economical condition of Europe in the reign of Charles the Fifth? Give the leading dates of his reign, and name some of his contemporaries.
  3. What social changes, good or bad, were produced in Europe in the fifteenth century, by the discovery of gold and silver in the New World?
  4. When was the Bank of Amsterdam established, and on what plan was it conducted?
  5. When did the school of the French economists flourish, who were some of its leading writers, and what were its characteristic doctrines?
  6. Who was Adam Smith, when did he live and publish his chief work, and what service did he render in the development of political economy?
  7. What economical effects had the establishment of American independence?
  8. When and for how long a time did the Bank of England suspend specie payments?
  9. What were the characteristic views of Sismondi, and by what circumstances of his time was he led to them?
  10. Give some account of Robert Owen and of his system of social reform.
  11. How have the peculiar situation and industrial conditions of England probably influenced the views of her writers on political economy?

Source: Harvard University. Examinations for Women, 1874, p. 70-71.  Also, a copy at the Radcliffe Archives.

 

 

 

 

Categories
Economic History Exam Questions Harvard

Harvard. Exam questions for Mediaeval Economic History of Europe. Ashley, 1895-96

 

William James Ashley (1899 biography) taught a course on the mediaeval economic history of Europe that required reading knowledge of Latin that was indeed tested as can be seen in his examination questions transcribed below.

Earlier posts with material from Ashley’s economic history courses:

University of Toronto Economic History Exams (1891)

Economic History Module in Introductory Economics Course (1896)

Modern Economic History (1899-1900)

______________________

Course Enrollment

[Economics] 10. Professor Ashley. — The Mediaeval Economic History of Europe. 2 hours.

Total 14: 7 Graduates, 5 Seniors, 2 Juniors.

Source: Harvard University. Report of the President of Harvard College 1895-96, p. 63.

______________________

Course Description

[10. The Mediaeval Economic History of Europe. Tu., Th., (and at the pleasure of the instructor) Sat., at 12. Professor Ashley.]

Omitted in 1897-98.

The object of this course is to give a general view of the economic development of society during the Middle Ages. It will deal, among others, with the following topics:— the manorial system in its relation to mediaeval agriculture and serfdom; the merchant gilds and the beginnings of town life and of trade; the craft gild and the gild-system of industry, compared with earlier and later forms; the commercial supremacy of the Hanseatic and Italian merchants; the trade routes of the Middle Ages and of the sixteenth century; the merchant adventurers and the great trading companies; the agrarian changes of the fifteenth and sixteenth centuries and the break-up of the mediaeval organization of social classes; the appearance of new manufactures and of the domestic industry.

Special attention will be devoted to England, but that country will be treated as illustrating the broader features of the economic evolution of the whole of western Europe; and attention will be called to the chief peculiarities of the economic history of France, Germany and Italy.

Students will be introduced in this course to the use of the original sources, and they will need to be able to translate easy Latin.

It is desirable that they should already possess some general acquaintance with mediaeval history, and those who are deficient in this respect will be expected to read one or two supplementary books, to be suggested by the instructor. The course is conveniently taken after, before, or in conjunction with History 9; and it will be of especial use to those who intend to study the law of Real Property.

Source: Harvard University, Faculty of Arts and Sciences. Division of History and Political Science Comprising the Departments of History and Government and Economics (1897-98), pp. 31-32.

______________________

1895-96
ECONOMICS 10.
Mid-year examination

I.

To be first attempted by all.

Translate, and comment, on the following passages: —

  1. Totius terrae descriptio diligens facta est, tam in nemoribus quam in pascuis et pratis, nec non in agriculturis, et verbis communibus annotata in librum redacta est.
  2. In Tineguella…sunt iiii hidae et dimidia ad geldum Regis. Et de istis tenet xx homines xx virgas terrae. Et xiii homines tenent vi virgas et dimidiam.
  3. Sicut traditum habemus a patribus, in primitivo regni statu post conquisitionem, regibus de fundis suis non auri vel argenti pondera sed sola victualia solvebantur.
  4. Plerique, cum aut aere alieno aut magnitudine tributorum aut injuria potentiorum premuntur, sese in servitutem dicunt nobilibus, quibus in hos eadem omnia sunt jura quae dominis in servos.
  5. Ceteris servis non in nostrum morem, descriptis per familiam ministeriis, utuntur. Suam quisque sedem, suos penates regit.

II.

Write on four only of the following subjects.

  1. The importance of the yardland in the rural economy of the Middle Ages.
  2. A history of the mark theory, from its first promulgation to its general acceptance.
  3. A comparison of the life of a mediaeval English village with that of a New England village of today.
  4. The Roman colonate.
  5. An account and criticism of Mr. Seebohm’s “Tribal System in Wales.”

 

Source: Harvard University Archives. Mid-year examinations, 1852-1943. Box 3. Bound volume: Examination Papers. Mid-Years, 1895-96.

______________________

1895-96
ECONOMICS 10.
Final Examination

I.

To be first attempted by all.

Comment on the following passages, and translate those in Latin and French: —

  1. If a man agree for a yard of land, or more, at a fixed rent, and plough it; if the lord desire to raise the land to him to service and to rent, he need not take it upon him, if the lord do not give him a dwelling.
  2. Ego Eadward…rex…dedi X manentes in illo loco qui dicitur aet Stoce be Hysseburnam, cum omnibus hominibus qui in illa terra errant qando AElfred rex viam universae carnis adiit.
  3. Magnates regni et alii minores domini qui tenentes habebant perdonarunt redditum de redditu ne tenentes abirent prae defectu servorum et caristia rerum.
  4. Whan Adam dalf and Eve span,
    Wo was thane a gentilman?
  5. Nul ne deit rien achater a revendre en la vile meyme, fors yl serra Gildeyn.
  6. Cives Londoniae debent LX marcas pro Gilda telaria delenda ita ut de cetero non suscitetur.
  7. No one of the trade of Spurriers shall work longer than from the beginning of the day until curfew rings out at the church of St. Sepulchre.

II.
Write on four only of the following subjects:

  1. The economic and constitutional questions involved in recent discussions as to the beginnings of town life in mediaeval Europe.
  2. A comparison of a mediaeval merchant gild with a modern “trust,” and of a craft gild with a modern trade union.
  3. The extent and character of the public regulation of prices and wages in the later middle ages.
  4. The cause of the Peasant Revolt in 1381.
  5. The relation of the English Reformation to the origin of the Poor Laws.
  6. A criticism of Cunningham and McArthur’s Outlines of English Industrial History.

 

Source: Harvard University Archives. Examination Papers, 1873-1915. Box 4, Bound volume: Examination Papers, 1896-97. Section: Papers Set for Final Examinations in Philosophy, History, Government, Economics, Fine Arts, Architecture, and Music in Harvard College (June, 1896), pp. 45-46.

Image Source:University and their Sons. History, Influence and Characteristics of American Universities with Biographical Sketches and Portraits of Alumni and Recipients of Honorary Degrees. Editor-in-chief, General Joshua L. Chamberlain, LL.D. Vol II (1899) , p. 595.

Categories
Exam Questions Harvard

Harvard. Exams in money, banking and commercial crises. Guest professor, W. C. Mitchell, 1908-09

 

For the academic year 1908-09 Wesley Clair Mitchell took leave from the University of California to cover three courses previously taught by A. Piatt Andrew at Harvard on money, banking and foreign exchange, and commercial crises. This post provides enrollment figures and the examination questions for the three courses.

While I have been unable to find course outlines in the Harvard archives, here is the (almost complete) 1906 Syllabus for Mitchell’s money course taught at the University of California.

___________________

Money. A General Survey…in recent times

Course Enrollment

[Economics] 8a 1hf. Asst. Professor Mitchell (University of California). — Money. A general survey of currency legislation, experience, and theory in recent times.

Total 103: 4 Graduates, 24 Seniors, 48 Juniors, 20 Sophomores, 1 Freshman, 6 Special.

Source: Harvard University. Report of the President of Harvard College, 1908-1909, p. 68.

 

ECONOMICS 8a1
Final Examination

1. and 2. Describe the monetary system of the United States, making such reference as is necessary for a clear understanding to monetary history and to the banking system.

  1. Sketch the monetary history of British India since 1873.
  2. Give a brief account of the production of gold and silver, and of the changes in the market ratio between them, for the years 1848 to 1908.
  3. State the case for bimetallism.
  4. What are the chief differences between monetary conditions in the Middle Ages and at present?
  5. Sketch some one of the paper-money episodes of the nineteenth century.
  6. What are index numbers? How are they constructed? Of what use are they?
  7. and 10. Discuss the way in which an increasing production of gold affects the price-level in gold-standard countries.

Source: Harvard University Archives. Examination Papers, 1873-1915 (HUC 7000.25), Box 8. Bond volume: Examination Papers, 1908-09. Papers set for Final Examinations in History, Government, Economics,…, in Harvard College (June 1909), p. 39.

___________________

Banking and Foreign Exchange

Course Enrollment

[Economics] 8b 2hf. Asst. Professor Mitchell (University of California). — Banking and Foreign Exchange.

Total 117: 3 Graduates, 24 Seniors, 61 Juniors, 22 Sophomores, 1 Freshman, 6 Special.

Source: Harvard University. Report of the President of Harvard College, 1908-1909, p. 68.

ECONOMICS 8b
Final Examination

  1. Exercise in Banking Accounts
    Do not spend more than sixty minutes upon this exercise.

    1. Arrange the following items in the form of a bank statement: Bonds and stocks, $90,000; Undivided profits, $10,000; Due from other banks, $50,000; Notes, $50,000; Exchanges for the clearing house, $50,000; Expenses, $1,500; Notes of other national banks, $1,000; Due to banks, $60,000; Real estate, $40,000; Surplus, $50,000; United States deposits, $30,000; 5% redemption fund, $2,500; Due from reserve agents, $50,000; Lawful money, $66,000; Capital, $200,000; Individual deposits, $600,000; Loans, $630,000; Other assets, $19,000.
    2. If the statement is that of a National Bank, not in a reserve city, how much lawful money is it required by law to hold as reserve?
    3. Assume that the statement shows the condition of the bank at the close of business Thursday. During business hours Friday the following transactions take place:—
      1. The bank pays a coal bill of $1,000 in cash;
      2. The bank remits $5,000 of United States notes to its reserve agent;
      3. The following deposits are received from individual customers:—
        $2,000 in gold certificates;
        $1,000 in the bank’s own notes;
        $5,000 in checks against the bank itself;
        $42,000 in checks against other banks belonging to the same clearing house.
      4. The bank discounts a 30-day note for $50,000 at 6%, taking United States bonds as collateral security. The borrower takes the proceeds in such form that he can pay in checks.
      5. A note of $20,000, discounted six months before at 4%, is paid by means of a check against the borrower’s account.
      6. At the clearing house, the bank finds $55,000 presented against it. Balances are paid in gold.
        How does the bank stand at the close of business Friday?
  1. Sketch the development of banking in England to 1700.
  2. Describe briefly the condition of banking in the United States in 1860.
  3. What factors affect the profit upon the issue of national bank notes?
  4. Compare the methods of treating a commercial panic followed by the banks of New York and the Bank of England.
  5. State the case for and against the incorporation into national banking law of provisions for any one of the following purposes:—
    1. To guarantee deposits;
    2. To permit branch banking;
    3. To change the bond-secured circulation for asset currency;
    4. To establish a central bank on the German model.
  6. State the leading differences between the business of commercial banking and savings banking.

 

Source: Harvard University Archives. Examination Papers, 1873-1915 (HUC 7000.25), Box 8. Bond volume: Examination Papers, 1908-09. Papers set for Final Examinations in History, Government, Economics,…, in Harvard College (June 1909), pp. 40-41.

___________________

Commercial Crises and Cycles of Trade

Course Enrollment

[Economics] 12 1hf. Asst. Professor Mitchell (University of California). — Commercial Crises and Cycles of Trade.

Total 68: 2 Graduates, 31 Seniors, 25 Juniors, 10 Sophomores.

Source: Harvard University. Report of the President of Harvard College, 1908-1909, p. 68.

 

ECONOMICS 121
Final Examination

Describe business conditions in the United States from 1890 to 1908, inclusive, with such reference to business conditions abroad as is necessary for an understanding of American conditions. State the most important causes of the changes which have occurred.

 

Source: Harvard University Archives. Examination Papers, 1873-1915 (HUC 7000.25), Box 8. Bond volume: Examination Papers, 1908-09. Papers set for Final Examinations in History, Government, Economics,…, in Harvard College (June 1909), p.  44.

Image Source: Thumbnail image from a 1900 picture of Wesley Clair Mitchell at the University of Chicago in Lucy Sprague Mitchell’s Two Lives: The Story of Wesley Clair Mitchell and Myself.

 

Categories
Exam Questions Fields M.I.T.

M.I.T. General exams for international economics, 1959

Charles Kindleberger, ca 1950

 

It seems safe to assume that Charles Kindleberger was the principal author of these general exams for the field of international economics (i.e. international trade and finance) since the exams come from his papers at the M.I.T. archive. I don’t know whether he had been the sole author. Maybe Samuelson contributed an international trade question or two, but that is much more speculative than Kindleberger’s likely authorship.

The general exams in international economics for 1950-51 have been transcribed and posted earlier.

_____________________

INTERNATIONAL ECONOMICS
February 16, 1959

Part I

Write an essay on any two or three of the following topics.

  1. The gains from trade.
  2. The effect of foreign trade on the distribution of income.
  3. Structural disequilibrium in the balance of payments.
  4. What determines the commodities and services a country will export and import?
  5. Elasticity conditions in international trade.

Part II

Answer any two or three of the following questions.

  1. A distinguished economist has stated that an underdeveloped country which is not developing balance of payments trouble, is not trying very hard to develop. Explain this view and discuss it critically.
  2. The New York Times recently had an article explaining that the present favorable position of the British and other West European balances of payments was really a bad sign because it was accompanied by a reduction in the volume of world trade. In particular, the improvement in the British balance of payments was due to a sharp improvement in the terms of trade which could not help worsen the situation after a few months.
    What have favorable or unfavorable terms of trade to do with the matter?
  3. What is the purpose of two of the following. How well have they filled, or are they filling, that purpose?
    1. The International Bank for Reconstruction and Development.
    2. The International Monetary Fund.
    3. The Colombo Plan.
    4. The Marshall Plan.
    5. The European Payments Union.
  4. The following is a real quotation from a distinguished economist: “Under a system of free trade there would be conflicts in interests neither among different nations nor among corresponding classes of different nations.”
    Discuss critically.
  5. “If all countries pursued full employment policies and at the same time avoided inflationary pressures, the balance of payments would present no problem.” Discuss theoretically.
  6. “There is no reason why a country could not pursue any domestic policy it liked provided it did not care about exchange stability.”
    “A country could have any fixed exchange rate it chose provided it pursued the correct domestic policy.”
    Discuss these quotations critically.
  7. Write an essay on the advantages and disadvantages of aiding underdeveloped countries through private capital movements, governmental loans and gifts on a bilateral basis or through multilateral aid.
  8. “It is frequently stated that aid should be given ‘with no strings attached.’ And this is a meaningless statement, because you can’t just send an anonymous check and say: do what you want.”
    What is meant by such a statement? What conditions could be attached to aid to make it effective?
  9. Write an essay on the instruments of commercial policy and discuss the effectiveness of each.

 

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General Examination in International Economics
May 20, 1959

Answer any five questions

  1. Discuss the relevance of the factor-price equalization theorem to the observed facts of international trade.
  2. It has been said that the theory of international trade is peculiarly static and that this vitiates its applicability to the problems of growing economies. Do you agree or disagree? Discuss.
  3. Analyze the relevance of international trade (and tariffs) to wages and employment in as many contexts as are significant.
  4. What differences exist between internal trade in a single country, economic integration between sovereign countries, and international trade between unintegrated countries? Is there more content to economic integration than customs union?
  5. Discuss the relative roles of income and price in international adjustment, not in theoretical models, but as they have operated in the real world as observed by historians, by econometricians, or by casual empiricists. What generalizations, if any, can be drawn from this experience regarding the efficacy of exchange depreciation in producing adjustment?
  6. Argue for or against central bank intervention in the forward exchange market.
  7. What can the economist say about foreign aid?
  8. Compare and contrast the impact of foreign trade and lending on economic stability in a developed country and in an export economy? What monetary and commercial policy devices are available to the latter to promote stability?
  9. Write brief didactic essays setting forth the “correct view” (conventional wisdom) of international trade economists on two of the following subjects:
    1. the long-run terms of trade facing underdeveloped countries;
    2. the persistent surplus in the German balance of payments;
    3. the regional vs the universal approach to commercial policy and intergovernmental lending;
    4. commodity price stabilization;
    5. multiple exchange rates: blessing, menace, crutch for the feeble?
  10. Argue the case for modifying the Articles of Agreement of the International Monetary Fund, or its procedures under the present articles, or for leaving both Articles and Procedures alone.

 

Source: M.I.T. Libraries. Institute Archives and Special Collections. Papers of Charles Kindleberger, 1934-99. Box 22, Folder “Examinations. International Economics, 1959-75”.

Image Source: M.I.T. Yearbook Technique, 1950.