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Exam Questions Harvard Socialism

Harvard. Exams and enrollment for economics of socialism and communism. Edward Cummings, 1893-1900

The father of the American poet E.E. Cummings, Edward Cummings, taught courses in sociology, labor economics, and socialism at Harvard during the last decade of the 19th century before he resigned to become the minister at Boston’s South Congregational Church. In this post I have included all the exams for his course on ancient and modern  utopias (a.k.a. communism and socialism) that I have been able to find. A course description and enrollment data are readily available from internet archives and included below as well. 

Note: for only the 1893-94 academic year and the single-term version of the course offered in 1895-96 are the exams complete. For the other academic years when the course was offered I have only found the first term exams.

Analogous courses on schemes of social reconstruction were taught in one form or another later by Thomas Nixon Carver, Edward S. Mason, Paul Sweezy, Wassily Leontief,  Joseph Schumpeter, and Overton Hume Taylor.

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Course Description
(1897-98)

*14. Socialism and Communism, — History and Literature. Tu., Th., and (at the pleasure of the instructor) Sat., at 9. Asst. Professor Edward Cummings.

[An asterisk (*) indicates that the course can be taken only with the previous consent of the instructor.]

Course 14 is primarily an historical and critical study of socialism and communism. It traces the history and significance of schemes for social reconstruction from the earliest times to the present day. It discusses the historical evidences of primitive communism, the forms assumed by private ownership at different stages of civilization, the bearing of these considerations upon the claims of modern socialism, and the outcome of experimental communities in which socialism and communism have actually been tried. Special attention, however is devoted to the recent history of socialism, – the precursors and the followers of Marx and Lassalle, the economic and political programs of socialistic parties in Germany, France, and other countries.

The primary object is in every case to trace the relation of historical evolution to these programmes; to discover how far they have modified history or found expression in the policy of parties or statesmen; how far they must be regarded simply as protests against existing phases of social evolution; and how far they may be said to embody a sane philosophy of social and political organization.

The criticism and analysis of these schemes gives opportunity for discussing from different points of view the ethical and historical value of social and political institutions, the relation of the State to the individual, the political and economic bearing of current socialistic series.

The work is especially adapted to students who have had some introductory training in Ethics as well as in Economics. A systematic course of reading covers the authors discussed; and special topics for investigation maybe assigned in connection with this reading.

 

Source: Harvard University. Division of History and Political Science Comprising the Departments of History and Government and Economics, 1897-98, pp. 35-36.

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1893-94

Course Enrollment

[Economics] 14. Asst. Professor Cummings. – Ideal Social Reconstructions, from Plato’s Republic to the present time. 1 hour.

Total 22: 7 Graduates, 8 Seniors, 5 Juniors, 2 Sophomores.

Source: Harvard University. Report of the President of Harvard College, 1893-94, p. 61.

 

 

ECONOMICS 14.
Mid-year examination, 1893-94.

(Arrange your answers in the order of the questions. Omit one.)

  1. What is a Utopia? and what significance do you attached to the recurrence of such literature at certain historical ethics?
  2. “For judging of the importance of any thinker in the history of Economics, no matter is more important to us than the view he takes of the laboring population.” Judge Plato, More and Bacon by this standard.
  3. “Moreover, it is hardly too much to say that Plato never got to the point of having a theory of the State at all.” In the Republic “man is treated as a micropolis, and the city is the citizen writ large.” Explain and criticize.
  4. “In More’s Utopia we have a revival of the Platonic Republic with additions which make the scheme entirely modern.… The economical element in the social body receives for the first time its proper rank as of the highest moment for public welfare.” Explain. To what extent have the ideals of Utopia been realized?
  5. “Then we may say that democracy, like oligarchy, is destroyed by its insatiable craving for the object which defines to be supremely good?” What, according to the Republic are the peculiar merits and defects of the several forms of political organization? and how are these forms related in point of origin and sequence?
  6. “Sir Thomas More has been called the father of Modern Communism.” How does he compare in this respect with Plato? How far do you trace the influence of historical conditions in each case?
  7. “But in your case, it is we that have begotten you for the State as well as for yourselves, to be like leaders and kings of the hive,– better and more perfectly trained than the rest, and more capable of playing a part in both modes of life.” Criticise the method and purpose of the educational system of the Republic. How far does Plato’s argument as to the duty of public service apply to the educated man to-day?
  8. “The religious ferment produced by the Reformation movement had begun to show signs of abatement, when another movement closely connected with it made its appearance almost at the same time in England and Italy, namely, the rise of a new philosophy.” How was this new philosophy embodied in the social ideals of Bacon and of Campanella? and what is the distinguishing characteristic of it?
  9. What essential contrast between pagan and Christian ideals have you found in schemes for social regeneration?
  10. Is there any recognition of “Social Evolution” in the Utopian philosophies thus far considered?
  11. What in a word, do you regard as the chief defect of the social reconstruction suggested in turn by Plato, Lycurgus, More, Bacon and Campanella? To what main problems suggested by them have we still to seek an answer?

Source: Harvard University Archives. Examination Papers. Mid-Year, 1893-94.(HUC 7000.55).

 

ECONOMICS 14.
Final examination, 1893-94.

(Arrange your answers in the order of the questions.)

  1. [“]The essential unity and continuity of the vital process which has been in progress in our civilization from the beginning is almost lost sight of. Many of the writers on social subjects at the present day are like the old school of geologists: they seem to think that progress has consisted of a series of cataclysms.” How far is this criticism true? Is the characteristic in question more or less conspicuous in earlier writers?
  2. “At the outset underneath all socialist ideals yawns the problem of population…. Under the Utopias of Socialism, one of two things must happen. Either this increase must be restricted or not. If it be not restricted, and selection is allowed to continue, then the whole foundations of such a fabric as Mr. Bellamy has constructed are bodily removed.” State carefully your reasons for agreeing or disagreeing. In which of the schemes for social reconstruction, ancient or modern, do you find any adequate recognition of the part which selection plays in progress?
  3. “If it is possible for the community to provide the capital for production without thereby doing injury to either the principle of perfect individual freedom or to that of justice, if interest can be dispensed with without introducing communistic control in its stead, then there no longer stands any positive obstacle in the way of the free social order.” Discuss the provisions by which Hertzka hopes to guaranteed this “perfect individual freedom.” Contrast him with Bellamy in this respect.
  4. “I perceive that capitalism stops the growth of wealth, not – as Marx has it – by stimulating ‘production for the market,’ but by preventing the consumption of the surplus produce; and that interest, though not unjust, will nevertheless in a condition of economic justice becomes superfluous and objectless.” Explain Hertzka’s reasoning and criticise the economic theory involved.”
  5. What is the gist of “News from Nowhere”?
  6. The condition which the social mind has reached may be tentatively described as one of realization, more or less unconscious, that religion has a definite function to perform in society, and that it is a factor of some kind in the social evolution which is in progress.” How far have you found a recognition of this factor in theories of social reconstruction?

Source: Harvard University Archives. Final Examinations, 1853-2001. (HUC 7000.28). Box 2, Papers Set for Final Examinations in Philosophy, History, Government and Law, Economics, Fine Arts, and Music in Harvard College, June 1894.

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1894-95

Course Enrollment

[Economics] 14. Asst. Professor Cummings.—Philosophy and Political Economy.—Utopian Literature from Plato’s Republic to the present time.  2 hours.

Total 8: 5 Seniors, 2 Juniors, 1 Sophomores.

Source: Harvard University. Report of the President of Harvard College, 1894-95, p. 62.

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1895-96

Course Enrollment

[Economics] 141. Asst. Professor Edward Cummings.—Communism and Socialism.—Utopias, ancient and modern. Hf. 2 hours. 1st half-year.

Total 15: 1 Graduate, 10 Seniors, 2 Juniors, 2 Sophomores.

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

 

ECONOMICS 14.
Mid-Year Examination, 1895-96.

(Arrange your answers in the order of the questions. Omit one.)

  1. The different senses in which the word Socialism is used. Where do you intend to draw the line between Socialism proper, and familiar forms of government interference and control – such as factory legislation, municipal water works, and government postal, telegraph or railroad services? Why?
  2. “National communism has been confused with the common ownership of the family; tenure in common has been confused with ownership in common; agrarian communism with village commons.” Discuss the evidence.
  3. “Just as Plato had his Republic, Campanella his City of the Sun, and Sir Thomas More his Utopia, St. Simon his Industrial System, and Fourier his ideal Phalanstery…. But the common criticism of Socialism has not yet noted the change, and continues to deal with the obsolete Utopias of the pre-evolutionary age.” What do you conceive to be the character of the change referred to? How far did earlier Utopias anticipate the ideals of the modern social democracy?
  4. What indication of Socialistic tendencies are to be found in the discipline of the Christian church? Explain the triple contract and its bearing on the doctrine of the usury.
  5. “The Communistic scheme, instead of being peculiarly open to the objection drawn from danger of over-population, has the recommendation of tending in an especial degree to the prevention of that evil.” Explained Mill’s argument. Do you agree?
  6. To what extent are the theories of Karl Marx indebted to earlier writers in the 19th-century?
  7. How far are the economic series of (a) Lasalle, (b) Marx related to the theories of the so-called orthodox Economists? Explain critically.
  8. How far do you trace the influence of historical conditions in the social philosophies of Plato, More, Bacon, Rousseau, St. Simon, Karl Marx?
  9. What connection do you see between the teachings of Rousseau and (a) modern Socialism, (b) modern Anarchism?
  10. What, according to Hertzka, is the economic defect of the existing social and industrial system, and what is the remedy? Contrast “Freeland” with “Looking Backward.”

Source: Harvard University Archives. Examination Papers. Mid-Year, 1895-96.(HUC 7000.55).

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1896-97

Course Enrollment

[Economics] 14. Asst. Professor Edward Cummings.—Communism and Socialism.—History and Literature.2 hours.

Total 13: 10 Seniors, 2 Juniors, 1 Sophomore.

Source: Harvard University. Report of the President of Harvard College, 1896-97, p. 65.

 

ECONOMICS 14.
Mid-Year Examination, 1896-97.

(Arrange your answers in the order of the questions. Omit one.)

  1. The different senses in which the word Socialism is used. Where do you intend to draw the line between Socialism proper, and familiar forms of government interference and control – such as factory legislation, municipal water works, and government postal, telegraph or railroad services? Why?
  2. “National communism has been confused with the common ownership of the family; tenure in common has been confused with ownership in common; agrarian communism with village commons.” Discuss the evidence.
  3. “Just as Plato had his Republic, Campanella his City of the Sun, and Sir Thomas More his Utopia, St. Simon his Industrial System, and Fourier his ideal Phalanstery…. But the common criticism of Socialism has not yet noted the change, and continues to deal with the obsolete Utopias of the pre—evolutionary age.” What do you conceive to be the character of the change referred to? How far did earlier Utopias anticipate the ideals of the modern social democracy?
  4. What indication of Socialistic tendencies are to be found in the discipline of the Christian church? Explain the triple contract and its bearing on the doctrine of the usury.
  5. The contributions of Greek writers to the development of economic thought.
  6. To what extent are the theories of Karl Marx indebted to earlier writers in the 19th-century?
  7. How far are the economic series of (a) Lasalle, (b) Marx related to the theories of the so-called orthodox Economists? Explain critically.
  8. How far do you trace the influence of historical conditions in the social philosophies of Plato, More, Bacon, Rousseau, St. Simon, Karl Marx?

Source: Harvard University Archives. Examination Papers. Mid-Year, 1896-97.(HUC 7000.55).

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1897-98

Course Enrollment

[Economics] 14. Asst. Professor E. Cummings.—Communism and Socialism.—History and Literature.2 or 3 hours.

Total 12: 3 Graduates, 5 Seniors, 2 Juniors, 2 Sophomores.

Source: Harvard University. Report of the President of Harvard College, 1897-98, p. 78.

 

ECONOMICS 14
Mid-Year Examination, 1897-98

Outline briefly the characteristics of socialistic theory and practice in ancient, medieval and modern times, — devoting about an hour to each epoch, and showing—

(a) so far as possible the continuity of such speculations; the characteristic resemblances and differences;

(b) the influence of peculiar historical conditions;

(c) the corresponding changes in economic theory and practice.

Source: Harvard University Archives. Examination Papers. Mid-Year, 1897-98.(HUC 7000.55).

 

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Not offered 1898-99

Source: Harvard University. Report of the President of Harvard College, 1898-99, pp. 72-73.

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1899-1900

Course Enrollment

[Economics] 14. Asst. Professor Edward Cummings.—Communism and Socialism.—History and Literature.Lectures (3 hours); 6 reports or theses.

Total 22: 2 Graduates, 11 Seniors, 4 Juniors, 1 Sophomore, 4 Others.

Source: Harvard University. Report of the President of Harvard College, 1899-1900, p. 69.

 

ECONOMICS 14
Mid-Year Examination, 1899-1900

  1. How, according to Plato, are economic organization, and the problems of production and distribution related (a) to social development; (b) to social and political degeneration?
  2. What do you conceive to be his most permanent contribution to social philosophy? What his chief defect?
  3. How far do the teachings of the Christian church and the Canon Law throw light on the gradual development of our fundamental economic ideas in regard to wealth, capital, trade, commerce?
  4. How far is there ground for the contention that the writings of Rousseau have been the chief arsenal of social and political revolutionists?
  5. “The right to the whole produce of labor—to subsistence—to labor:”
    What, according to Menger, have been the most important contributions to the successive phases of this discussion?

Source: Harvard University Archives. Examination Papers. Mid-Year, 1899-1900.(HUC 7000.55).

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), pp. 155-156.

 

Categories
Economic History Exam Questions Harvard Undergraduate

Harvard. First Undergraduate General and Specific Exams in History, Government and Economics Division, 1916.

 

In this post we can read some of the history behind the establishment of Harvard’s undergraduate tutorial and divisional examination system for which the Division of History, Government, and Economics served as an early testing ground. The first general examination of that division along with the “specific” economics field examinations from 1916 are transcribed below.

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Backstories regarding the Division Examinations in History, Government, and Economics

History of Origin and Growth of the Tutorial System
Shows Gradual Incorporation in All Departments But Chemistry
Introduction of General Exams In Medical School Made Entrance Wedge
January 10, 1933

Excerpts from a brief history of the General Examinations and the Tutorial System recently published by the University follows below.

In the spring of 1910 a committee was appointed which examined the system prevailing in American medical schools of granting the degree upon an accumulation of credits in courses, and the European system of two general examinations, the earlier upon the general scientific or laboratory subjects and the final one upon the clinical branches. The committee recommended the adoption of the latter system, and after its provisional approval by the Faculty of Medicine in March of the following year, another committee, mainly of different members, worked out a plan which was adopted by that Faculty in October, 1911.

Adopted by Divinity School

Shortly after its adoption in the Medical School the idea of a general examination invaded departments at Cambridge. In the academic year 1911-12 it was adopted in the Divinity School for the degrees of Bachelor and Master of Theology; and in this case it seems to have worked well from the start. Meanwhile the division of History, Government and Economics had been considering the matter, and after a year of careful study formulated a plan which as sanctioned by the Faculty of Arts and Sciences in the winter of 1912-13. The examination was to be conducted by the division and in fact by a committee of three of its members appointed by the President, who were to be relieved of one half of their work of instruction. It was to consist of both written and oral tests, was to be required of all college students concentrating in that division, in addition to their courses, and was to go into effect with the class entering the following autumn. Authority was also given to supplement by tutorial assistance the instruction given in the courses. Thus the complete system of a general examination and tutors was set up for all undergraduates in one division, and the one which at the time had the largest number of concentrators.

Trial Seems in Danger

The plan was put into effect without serious obstacles. The number of students concentrating in these subjects did, indeed, diminish, the weaker of more timid seeking departments where no such examination barred the way; out that was no harm, and proved to be in large part a temporary effect. The preparing of examination questions, which had been supposed very difficult, was exceedingly well done by an able committee. Yet the plan was not at once wholly successful. Tutorial work was new, and men equipped for it were not to be found. They had to learn the art by their own experience, and by what they derived from an exchange of tutors for a year with Oxford and Cambridge. In fact, after a few years of trial the plan seemed in danger of breaking down. The benefits were not at once evident; some of those formerly in favor of it became skeptical, while opponents were confirmed in their opinions. Until we entered the World War the only other field of concentration which had adopted a general examination of all students for graduation was that of History and Literature, although something of the kind had long been in common use in the case of candidates for distinction or honors.

Crisis Comes After War

The crisis came at the close of the war, when the changes made for military purposes in all instruction had left matters in a somewhat fluid state. A committee of the Faculty was appointed to consider what, if any, extension of the principle could profitably be made in other fields. There was a feeling that such a system ought not to be maintained in one class of subjects alone; that it should either be abolished or extended. After a study of the question in its various phases the committee reported, and in April, 1919, the Faculty voted, that general examinations should “be established for all students concentrating in Divisions or under Committees which signify their willingness to try such examinations,” and that they “be employed for the members of the present Freshman class.” Thereupon all the divisions under the Faculty, except those dealing with mathematics and the natural sciences, decided to make the experiment. Some of them did so reluctantly, with misgiving, and under a condition that they should not be obliged to employ tutors. By the academic year 1924-25, therefore, the students in all the divisions with a general examination had the benefit of tutoring.

Adopted by All Departments

Since that time the progress of the system has been gradual but continuous. In 1926 the departments of mathematics, biology, and bio-chemical sciences adopted it; and in 1928 geology and physics were added to the list; leaving chemistry as the only department with a large number of concentrators that still retains the older methods, and its work is done so much in laboratories that its position is peculiar. The only change in the system has come from a demand by the students themselves. There has been no desire on the part of the University to abandon teaching or examination in courses by copying the practice at Oxford and Cambridge of leaving instruction wholly to the tutor, as that would have seemed ill-adapted to the habits of the College.

Source: Harvard Crimson, January 10, 1933.

 

TUTORIAL SYSTEM HEREAFTER
Rules for Concentration in History, Government and Economics Will Apply Next Year.
April 10, 1914

Beginning with the class of 1917 and applying to all subsequent classes, a new rule in regard to concentration in the Division of History, Government and Economics has been adopted.

Concentration in this Division requires at least six courses which are related to each other. Under the new system all students concentrating in this division will be required to pass in their Senior year a final examination covering their special field within the Division, and consisting of a written examination early in the spring, and an oral examination toward the close of the year. In order to prepare students for these examinations the University will provide special tutors beginning with the Sophomore year.

Only Two Introductory Courses.

Every student intending to concentrate in History, Government, and Economics should state the Department in which he will take at least four courses and the Department in which he will take the remaining two. He will not be allowed to count towards his concentration more than two of the introductory courses, History 1, Government 1, and Economics A. The aim of the system is to enforce a more accurate knowledge and comprehension of studies as a whole. This aim has frequently not been achieved owing to the wide scattering of courses.

Source: Harvard Crimson, April 10, 1914.

 

 

THE TUTORIAL SYSTEM.
April 10, 1914

There are two new features in the recently announced requirements of the Division of History, Government and Economics, namely, the general examination and the tutorial system. And they are complementary. The task of the tutor is to intelligently guide the student in his preparation for the final examination, to assist him in that organization and correlation of his work which is the key-note of the plan. His work begins where the adviser’s work ends. The adviser still superintends the choice of courses made by the student although it is to be expected, probably, that a capable tutor will tend to influence this choice. It will be impossible so sharply to distinguish the task of choosing courses and correlating them as to prevent this. The sanction of the adviser may approximate formal permission, with the guiding force held by the tutor.

The general examination on the other hand, modelled after the plan in use for doctorate examinations, including a general examination for the division work and a supplementary special test for the department or field, reaches over the whole matter of choice and organization and focuses the work of the adviser, tutor and student.

One result is inevitable, that is, the effect of producing a more serious scientific attitude toward the work. The student who chooses this Division will be presumed to have made the choice with serious intent to perfect himself in that line. The student who chose that work because he had to concentrate in something may well feel he is getting more than he bargained for. This is not a criticism; the result-to make study in that division more in the way of laboratory work, to lift it out of the region of inconsequent eclectic undergraduate education may be more serious. The decline or increase in the number of men in the Division will show to what an extent the work there is taken for serious reasons, not as a line of least resistance.

The effect in minimizing course grades, cramming, and mechanical study can only be helpful. To produce capable and broad-minded students, with a wide grasp of their field and an accurate knowledge of their specialty is the very desirable end to which the system aims. And that not by more work but by better organization.

 

Source: Harvard Crimson, April 10, 1914.

 

From the Annual Reports of the President of Harvard College

… the single course is not, and cannot be, the true unit in education. The real unit is the student. He is the only thing in education that is an end in itself. To send him forth as nearly a perfected product as possible is the aim of instruction, and anything else, the single course, the curriculum, the discipline, the influences surrounding him, are merely means to the end, which are to be judged by the way they contribute and fit into the ultimate purpose. To treat the single course as a self-sufficient unit, complete in itself, is to run a danger of losing sight of the end in the means thereto…

…In the College the problem of making the student, instead of the course, the unit in education is more difficult than in the other parts of the University, because general education is more intangible, more vague, less capable of precise analysis and definition, than training for a profession. Nevertheless, in the College, some significant steps have been taken which tend in this direction. The first was the requirement that every student must concentrate six of his seventeen courses in some definite field, must distribute six more among the other subjects of knowledge, and must do so after consulting an instructor appointed to advise him….

…The rule of concentration, coupled with the provision that no tmore than two of the six courses shall be of an elementary character, is intended to compel every man to study some subject with thoroughness, and acquire a systematic knowledge thereof….

…The second step in treating the student, instead of the course, as the unit in education, was taken by the Division of History, Government, and Economics, when, and with the approval of the Faculty, it set up the requirement of a general examination at graduation for students concentrating in that division. The examination, which is entrusted to a committee representing the three departments within the division, is to be distinct from that in the courses elected, and is to include not only the ground covered in them, but also the general field with which they have dealt, and the knowledge needed to connect them. This is a marked departure from the plan of earning a degree by scoring courses; and it will take time to adjust men’s conceptions of education to a basis new to the American college, though familiar in every European university. To assist the students in preparing themselves for the general examination each of them at the beginning of his Sophomore year is assigned to the charge of a tutor who confers with him about his work and guides his reading outside of that required in the courses. As the plan could be applied only to men entering after it was established, the first examinations will be held next spring [1916], and then only for men who graduate in three years.

Source: Harvard University. Report of the President of Harvard College, 1914-15, pp. 8-10.

Courses are merely a means to an end, and that end is the education of the student. One method of placing courses in their true light as a means of education is the provision of comprehensive examinations for graduation, covering the general field of the student’s principal work beyond the precise limits of the courses he has taken. This has long been done in the case of the doctorate of philosophy; and in the year covered by this report [1915-16] it was applied for the first time to undergraduates concentrating in the Division of History, Government, and Economics. Only twenty-four students of the Class of 1917, who finished their work in three years and concentrated in this field, came under its operation; but they were numerous enough to give a definite indication of the working of the plan. To that extent the results were satisfactory. The examination papers were well designed for measuring the knowledge and grasp of the subject, with a large enough range of options to include the various portions of the field covered by the different candidates; and the examiners themselves were satisfied with the plan as a fair means of testing the qualification of the students. During the coming year a much larger number of men will come up for this comprehensive examination, which promises to mark a new departure in American college methods.

Source: Harvard University. Report of the President of Harvard College, 1915-16, p.19.

A significant event of the year [1915-16] was the inauguration by the Division of History, Government, and Economics of its new examination of candidates for the Bachelor’s degree who have concentrated in the Division. This examination was devised “not in order to place an additional burden upon candidates for the A.B., but for the purpose of securing better correlation of the student’s work, encouraging better methods of study, and furnishing a more adequate test of real power and attainment.” In their preparation students have from the beginning of the Sophomore year special tutorial instruction. The examination embraces three tests: first, a general paper, with a large number of alternative questions, treating comprehensively the subjects of the Division; second, a special paper, covering a chosen specific field; and lastly, a supplementary oral examination which may relate to either the general or the special paper, but ordinarily bears upon the specific field. The results of the first examination, taken by a comparatively small group of men graduating in three years, are in no way conclusive. The members of the examining committee, however, think them distinctly encouraging. Twenty-four candidates appeared, of whom twenty-two passed and two failed. Their selection of questions from the general paper indicated breadth of preparation and their bearing at the oral examination showed more than a little clearness and independence of thought.

Source: Harvard University. Report of the President of Harvard College, 1915-16, pp.75-76.

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DIVISION OF HISTORY, GOVERNMENT AND ECONOMICS
DIVISION EXAMINATIONS FOR THE DEGREE OF A. B.
1915–16

GENERAL DIVISION EXAMINATION

Part I

The treatment of one of the following questions will be regarded as equivalent to one-third of the examination and should therefore occupy one hour. Write on one question only.

  1. Compare the Empires of Rome and of Charlemagne.
  2. Discus the influence of religious ideas on national life and institutions in the Americas.
  3. What were the principal factors in the development of the United States from (a) 1776 to 1818, or (b) 1818 to 1861, or (c) 1861 to 1898, or (d) 1898 to the present?
  4. Discuss and illustrate the economic bases of political party allegiance.
  5. Explain the influence of British policy upon international law.
  6. Why do the peoples of the temperate zones tend to assume leadership among the peoples of the earth?
  7. How does the federal form of government affect the life of a nation?
  8. Sketch the political and economic careers of two of the following: (a) Cobden, (b) Bright, (c) Hamilton, (d) Chase, (e) Colbert, (f) Jaurès.
  9. Compare English, French, and Spanish colonial methods and policies in the New World.

 

Part II

Five questions only from the following groups, A, B, and C, are to be answered, of which three must be from one group. The remaining questions must be taken, one from each of the other groups, or both from one of the other groups.

 

A

  1. In what respects has Roman political organization influenced Western Europe of modern times?
  2. What has been the effect of the embodiment of nationalities in political unities during the nineteenth century?
  3. Why was the influence of Metternich so potent?
  4. Discuss as to municipalities: “The citizens may have as good government as they care to demand.”
  5. To what extent are the constitutional principles of the United States common among Central and South American States?
  6. Why were spheres of interest claimed in Africa and in Asia in the late nineteenth and early twentieth centuries?
  7. To what extent and why should national party preferences be followed in state and municipal elections?
  8. In what countries has municipal government been more highly developed; why and with what results for the citizen and for the municipality?

 

B

  1. The development of the idea of the Balance of Power up to the Peace of Utrecht.
  2. Show how Europe influenced the Far East in the second half of the nineteenth century.
  3. What services did the English colonies in America render to the mother country previous to 1763?
  4. Explain the influence of pro-slavery sentiment on the expansion of the United States.
  5. Explain causes and results of European immigration into the United States within the last fifty years.
  6. Show the development of steam transportation in Europe and its results.
  7. Why are recent constitutions of states in the United States generally lengthy documents?
  8. Write briefly on five of the following: (a) Abelard, (b) Copernicus, (c) Erasmus, (d) Vasco de Gama, (e) Grotius, (f) Huss, (g) Justinian, (h) Locke, (i) Petrarch, (j) Rousseau.

 

C

  1. Is the trust a desirable feature of modern economic organization?
  2. Should England modify her policy of free trade?
  3. Trace and explain the history of the Interstate Commerce Commission.
  4. What caused the failure of the Confederacy?
  5. Analyze the three most important political aspects of the socialist movement; the three most important economic aspects.
  6. To what extent was the failure of the first Bank of the United States to secure a renewal of its charter due to political factors; to what extent, to economic?
  7. What have been the economic and political consequences of state ownership of the railways of Prussia?
  8. Account for the modern increase of public expenditures in (a) Europe; (b) American city government; (c) the Federal government of the United States.

April 27, 1916.

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DIVISION SPECIAL EXAMINATION
Economic history

Answer six questions.

A
Take from this group at least one and not more than two.

  1. Considered in its theoretical aspects the tariff policy of the United States since 1845.
  2. What factors have contributed most to changes in the distribution of wealth in the United States since 1870?
  3. Trace the development of uniform accounting for railroads in this country. Indicate any connections between your uniform accounting and government regulation of the railroads.
  4. Analyze the merits and defects of our current statistics of (a) imports and exports; or (b) wholesale prices; or (c) wages; or  (d) industrial organization.

 

B
Take from this group at least two and not more than four.

  1. Compare tariff changes in England and Germany during the nineteenth century.
  2. Discuss the essential features of the labor movement in England from 1825 to 1850.
  3. What have been the different lines of development in the combination movement in England?
  4. Discussing the economic aspects of the American Revolution with respect to (a) factors contributing to the revolution; (b) resources affecting the outcome; (c) consequences of the War.
  5. Explaining any important national policies developed in the United States between 1815 and 1830.
  6. Write the monetary history of United States during one of the following periods: (a) 1792-1837; (b) 1879-1893; (c) 1893-date.
  7. Trace the history of our mercantile marine, giving special attention to significant government policies.
  8. Give a brief account of organized labor in the United States.
  9. Indicate any important changes in American agriculture since 1900.

 

C
Take from this group at least one and not more than two.

  1. Has private ownership of the railroads justified itself in the United States? What is the case for and against government ownership of railroads in this country?
  2. Explain and criticise the presence policy of the Federal government regarding industrial combinations.
  3. Discuss critically the project of a non-partisan Federal tariff board.
  4. Discuss the causes, extent, and consequences of the change in the price level since 1897.

May 5, 1916.

__________________

DIVISION SPECIAL EXAMINATION
Money and Banking

Answer six questions.

A
Take from this group at least one and not more than two.

  1. State and criticise the quantity theory of money.
  2. Analyze a typical bank statement.
  3. Discuss index numbers of prices with reference to (a) the purposes they may serve; (b) various methods of construction; (c) the best index numbers for wholesale prices in the United States.
  4. Where should you look for statistics of the following : (a) bank clearings of England and the United States; (b) resources and liabilities of banks in Massachusetts; (c) foreign exchange rates in New York in 1903; (d) the monetary stock of the United States; (e) current changes in the value of gold?

 

B
Take from this group at least one and not more than two.

  1. Compare the adoption of the single gold standard by England and by Germany.
  2. To what extent, and by what means, has the financial administration of the Federal government in the United States influenced our monetary history?
  3. Give a critical account of the greenbacks from 1862 to 1878. Indicate all factors, political and other, connected with this episode of monetary history.
  4. Analyze the factors leading to the adoption of the Federal Reserve banking system. Compare these factors with those leading to the establishment of the National banking system.

 

C
Take from this group at least two and not more than four.

  1. Describe and criticise the existing monetary system of the United States.
  2. Explain and illustrate the gold exchange monetary standard.
  3. What different meanings have been suggested for stabilizing the value of our monetary standards? What objections, if any, are to be raised against each of the proposed measures?
  4. Distinguish the different kinds of banking. To what extent should they be conducted by the same institutions? To what extent have they been combined in the United States? In any other countries?
  5. What measures have been adopted before 1914 by the Bank of England to prevent or allay financial panics? What action was taken in 1914 to meet the banking conditions created by the outbreak of the European War?
  6. Indicate any connections which have existed between the banks and the railroads within the United States.
  7. How and why has the European War affected foreign exchange between United States and other countries?
  8. Account for the financial panic of 1907. To what extent, and by what means, does the Federal Reserve system promise to prevent the recurrence of the conditions of 1907?

May 5, 1916.

__________________

DIVISION SPECIAL EXAMINATION
Corporate Organization, including Railroads

Answer six questions.

A
Take from this group at least one and not more than two.

  1. Discussed critically the “economies of industrial combination.”
  2. What official statistics throw light upon industrial organization in the United States? Criticize the available statistics of the subject.
  3. Trace the development of uniform accounting for railroads in this country. Indicate any connections between uniform accounting and government regulation of the railroads.
  4. Enumerate the principal sources of railway statistics at the present time, Shelbi and show the content, importance, and deficiencies (if any) of each.

 

B
Take from this group at least one and not more than two.

  1. What has been the policy of American states with respect to business corporations?
  2. What have been the different lines of development in the combination movement in England?
  3. Compare the history of water transportation in the United States, England, and Germany.
  4. Give an account of the “trust movement” in the United States since 1898.

 

C
Take from this group at least two and not more than four.

  1. Describe in detail how control is vested and exercised in a typical modern business corporation.
  2. Describes the formation of some large industrial combination effected in the United States since 1898.
  3. What have been the more important economic and social consequences of the corporate organization of industry?
  4. What connections exist between banks and industrial combinations in the United States? Contrast the situation here with that in Germany.
  5. Discuss the Federal Trade Commission with respect to (a) the reasons for its establishment; (b) its tenure of office and powers; (c) its probable future.
  6. Upon what different bases may railway systems be appraised? What are the merits and defects of each of the bases indicated?
  7. Discuss standards of reasonableness (a) for the general level of railway rates; (b) for rates on particular commodities.
  8. Give an account of the relations between organize labor and our railroads.
  9. What different relationships as to ownership, management, and regulation may exist between the government and public service industries? Criticise in turn each of these possible relationships.

May 5, 1916.

 

__________________

DIVISION SPECIAL EXAMINATION
Public Finance

Answer six questions.

A
Take from this group at least one and not more than two.

  1. Discuss critically the different theories of justice and taxation.
  2. From an accounting point of view, wherein are municipal accounts essentially unlike business accounts? What factors impair the value of municipal accounts?
  3. Outline a system of uniform municipal accounts. What provisions have been made in the United States for the use of the uniform municipal accounts?
  4. What are the chief sources of public finance statistics in the United States?

 

B
Take from this group at least one and not more than two.

  1. Give the history of the Federal public land policy to 1835. Show any connections between the public land policy and the treatment of the public debt.
  2. Sketch the development and present status of the general property tax in this country.
  3. Givs a critical account of the Independent Treasury of the United States.
  4. Distinguish “direct” and “indirect” taxes. Describe the separation of direct and indirect taxation under our system of national and state governments. What were the reasons for this separation? What have been its consequences, economic and political?

C
Take from this group at least two and not more than four.

  1. For what different objects has taxation been employed? Give illustrations. What is to be said for and against the employment of taxation for each of the purposes indicated?
  2. Formulate and defend a plan for a state income tax.
  3. Discuss inheritance taxes in the United States with reference to (a) the employment of inheritance taxes by state and Federal governments; (b) The rates applied; (c) the use of progressive rates; (d) the maximum advisable rates; (e) possible effects upon the distribution of wealth.
  4. What is the case for and against the partial or complete exemption of improvements from taxation under the general property tax? Where, if at all, have such a policy been adopted?
  5. What is “double taxation”? Under what circumstances, if any, is it objectionable? Why is the problem of double taxation a serious one today in the United States? What solution can be suggested?
  6. Suppose the Federal government abolishes all import duties upon sugar and substitutes equivalent bounties on sugar production in the United States. How, if at all, does this tend to affect the distribution of wealth? When, and for what reasons, has a change similar to that supposed been actually made in the United States?
  7. To what extent, and by what process, is a tax shifted to consumers when levied upon a commodity produced (a) at constant cost? (b) at decreasing cost? (c) at increasing cost? (d) by a monopoly? Illustrate by diagrams.

May 5, 1916.

 

__________________

OTHER DIVISION SPECIAL EXAMINATIONS (Not transcribed here)

Modern History since 1789 including American History
American Government
Municipal Government
Political Theory

 

Source: Harvard University Archives. Divisional and general examinations, 1915-1975(HUC 7000.18). Box 6, Bound Volume (stamped “Private Library Arthur H. Cole”) “Divisional Examinations 1916-1927”.

Image Source:  1875 Gate at Harvard Yard. From the Wallace Nutting photographic Collection at the Historic New England website.

Categories
Exam Questions Harvard

Harvard. Political Economy Examinations. Bowen, Green, and Dunbar, 1868-1872.

 

Today’s post provides transcriptions for five examinations in political economy used at Harvard between 1868 and 1872. Links to two previously transcribed examinations from that time are provided as well. Information about course enrollments and textbooks come from the annual reports of the President of Harvard College.

Before Adam Smith’s Wealth of Nations and John Stuart Mill’s Principles of Political Economy were assigned beginning with the 1870-71 academic year, the following textbooks were listed for Harvard’s  political economy courses:

As an introductory textbook for the junior year course in political economy:

James E. Thorold Rogers, A Manual of Political Economy for Schools and Colleges. Oxford: Clarendon Press, 1868.

“Advanced” Textbooks in political economy for senior year courses by Francis Bowen:

The Principles of Political Economy applied to the Condition, the Resources, and the Institutions of the American People (2ndedition, 1859). American Political Economy; including Strictures of the Currency and the Finances since 1861 (1870). One might presume Bowen’s lectures were closer to what is found in the later of these two books. 

About the instructors…

Harvard Crimson’s obituary for Francis Bowen. Profile of “Francis Bowen, 1811-1890” at the History of Economics Website.

Obituary for Nicholas St. John Green in the Proceedings of the American Academy of Arts and Sciences, Vol. 12 (May, 1876-May 1877), pp. 289-291.

Frank Taussig’s 1900 obituary for Charles Franklin Dunbar. Profile of  “Charles Franklin Dunbar, 1830-1900” at the History of Economics Website.

_________________

Academic Year 1867-68.

Seniors.

“During the First Academic Term, the Senior Class recited six times a week in Bowen’s Logic, and Bowen’s Political Economy.”

Source: Annual Report of the President of Harvard College, 1867-68, p. 24.

_________________

POLITICAL ECONOMY

SENIORS, JANUARY, 1868.

  1. Wherein does value differ from utility? What are the two elements of value, and what becomes of the value, when either of these elements is wanting?
  2. Explain the nature of Capital, wherein it differs from Wealth, and what is its source or the means of its increase. Distinguish productive from unproductive consumption.
  3. Which are the three functions of banks, and which of these three is unessential, so that banks could exist and do their work without it? Wherein do our present National Banks differ from the old State banks?
  4. What is the operation of funding a National Debt? By what vicious method of funding was the English National Debt made over 40 per cent. larger than the amount actually received by the government as a loan? In what different way was our own National Debt, contracted during the Civil War, made largely to exceed the amount received?
  5. Distinguish Direct from Indirect Taxes? Why is our present Income Tax said to be unconstitutional? Why are legacy taxes and other taxes on succession to property said to be the best of all forms of taxation?

Source: Harvard University Archives. Mid-year examinations, 1852-1943 (HUC 7000.55), Box 1, Folder “Mid-year examinations, 1867-1868”.

_________________

Academic Year 1868-69.

Seniors.

“During the First Academic Term the Senior Class recited three times a week in Bowen’s Ethics and Metaphysics, and Bowen’s Political Economy.”

Source: Annual Report of the President of Harvard College, 1868-69, p. 32.

 

Exam Questions in Political Economy for Seniors, June 1869.

 

_________________

Academic Year 1869-70.

Seniors. First Term.

Prof. Bowen. Political Economy.

Text-Book: Bowen’s Political Economy.
Number of students: 129
Number of Sections: 2 & 3
Number of exercises per week: 3
Number of hours per week: 3

Source: Annual Reports of the President and Treasurer of Harvard College, 1869-70, p. 36.

_________________

Academic Year 1869-70.

POLITICAL ECONOMY

SENIORS, DECEMBER, 1869.

  1. Explain the distinction between Property and Wealth; between Wealth and Capital; between the Price of a commodity and its natural Exchangeable Value; between Simple and Complex Coöperation, the two kinds of Division of Labor. What are the two elements of Exchangeable Value, and what is its measure?
  2. What is Wakefield’s theory of Colonization, and how did it work? In what respects was an ancient Colony unlike a modern one? Explain the United States system of disposing of the public lands.
  3. What were the old guilds of trade, and the old meaning of the word University? How does Caste, or the fixity of ranks and classes, affect the Increase of Capital?
  4. Explain briefly the Malthusian theory of population; refute it by facts and arguments.
  5. Give an outline of Ricardo’s theory of Rent, Wages, and Profits, showing the connection in each case with Malthusianism. How does Ricardo explain the steady decline of the rate of Profit? What better explanation can be given of this phenomenon?
  6. Explain Bills of Exchange; the course and par of exchange between London, New York, and Paris; the difference between the nominal and the real par.
  7. Prove that a gradual decline is now taking place in the value of money, — e.of the two precious metals; and show how this decline will affect the value of different investments and various kinds of property.
  8. What change was made in the dollar by the law of 1834, and again by the law of 1853? Why was the gold dollar altered in the former case, and the silver dollar in the latter?
  9. Distinguish Paper Money properly so called from Bank Currency; and trace the causes and consequences of the issue of the former in Revolutionary times.
  10. Explain the three functions of a Bank: prove that convertible Bank-bills cannot be issued in excess. What was the “Allied Bank” system in Boston, and what circumstances led to its adoption?

Source: Harvard University Archives. Mid-year examinations, 1852-1943 (HUC 7000.55), Box 1, Folder “Mid-year examinations, 1869-1870”.

_________________

Academic Year 1869-70.

Juniors. Second Term.

Mr. N. St. John Green. Instructor in Philosophy

Text-Books: Hamilton’s Metaphysics and Rogers’s Political Economy.
Number of students: 158
Number of Sections: 3
Number of exercises per week: 3
Number of hours per week [for instructor]: 9

Source: Annual Reports of the President and Treasurer of Harvard College, 1869-70, p. 38.

 

Examination questions in Political Economy for Juniors, June 1870.

_________________

Academic Year 1870-71.

Seniors.

Mr. N. St. John Green. Instructor in Political Economy.

Text-Books: Adam Smith’s Wealth of Nations. — J. S. Mill’s Political Economy.
Number of students: 99
Number of Sections: 2
Number of exercises per week for students: 3
Number of hours per week for instructor: 6

Source: Annual Report of the President of Harvard College, 1870-71, p. 52.

_________________

POLITICAL ECONOMY.

SENIORS, FEBRUARY 1871.

  1. What are the laws which fix the natural rate of wages?
  2. What are the laws which fix the natural rate of profit?
  3. What is the nature of rent?
  4. How does rent enter into the price of commodities?
  5. What is capital, and what is the difference between fixed and circulating capital?
  6. What are the principles which determine the rate of interest?
  7. What are the advantages of a division of labor, and how far can the division of labor be carried to advantage?
  8. What is price and what [is] the difference between nominal and real, natural and market price?
  9. Suppose a prosperous people hitherto untaxed. It becomes necessary to raise a moderate amount of money by taxation. What kind of tax should, in your opinion, be resorted to? Why? To what objections would such a tax be liable?
  10. Boswell, in his Life of Johnson, says, “I put a question to him (Johnson) upon a fact in common life which he could not answer, nor have I found any one else who could: What is the reason that women servants, though obliged to be at the expense of purchasing their own clothes, have much lower wages than men servants, to whom a great proportion of that article is furnished, and when in fact our female house servants work much harder than the male?” How do you answer Boswell’s question?

Source: Harvard University Archives. Mid-year examinations, 1852-1943 (HUC 7000.55), Box 1, Folder “Mid-year examinations, 1870-1871”.

_________________

Academic Year 1871-72.

Seniors.

Prof. Dunbar. Political Economy. (elective)

Text-Books: Adam Smith’s Wealth of Nations. — J. S. Mill’s Political Economy.
Number of students: 75
Number of Sections: 2
Number of exercises per week for students: 3
Number of hours per week for instructor: 6

Source: Annual Report of the President of Harvard College, 1871-72, p. 48.

_________________

POLITICAL ECONOMY.

SENIORS, January 1872.

  1. What is the distinction between wealth and capital?
  2. What is the difference between fixed and circulating capitals? — and to which does money belong?
  3. When either of the precious metals becomes more abundant, and the remedy of over-valuation and limitation of the right of tender is to be applied, does it make any difference which metal is over-valued, and if so, what difference?
  4. On what basis is the circulation of the Bank of England established?
  5. How does Smith distinguish between productive laborers and unproductive?
  6. Explain the paradox that “what is annually saved is as regularly consumed as what is annually spent?”
  7. What was the error of Locke and Montesquieu as to the supposed connection between the depreciation of value of gold and silver and the lowering of the rate of interest?
  8. What is Adam Smith’s view as to the point at which the rate of interest should be fixed by law, and what is his mistake?
  9. How can a paper currency be kept at a par with gold?
  10. What was the theory of the balance of trade, and in what respect was it fallacious?
  11. Why do manufactures often flourish while a nation is carrying on a foreign war?
  12. What was the theory of the agricultural system, and what was its great error?
  13. State the general objection to any system for the extraordinary encouragement of a particular branch of industry, and such partial or complete answers to that objection as may occur to you.
  14. What is the chronological relation of the several systems of Political Economy?

For Consideration.

[From a Report of the Comptroller of the Currency, December, 1871.]

“The tenacity with which the Pacific States adhere to a gold currency is quite notable. Whether it is equally praiseworthy, is another thing. It is not clear that those States derive any substantial benefit from the course they have pursued, and it is beginning to be manifest that the United States are not at all benefited by it. The substitution of a paper currency in California and the other gold-producing States for their present hard money would probably set free for the use of the government and the whole country some thirty or forty millions of gold, and at the same time provide those communities with a more economical, active, and accommodating circulating medium.”

Source: Harvard University Archives. Mid-year examinations, 1852-1943 (HUC 7000.55), Box 1, Folder “Mid-year examinations, 1871-1872”.

_________________

Academic Year 1871-72.

Juniors.

Prof. Dunbar. Political Economy [required course]

Text-Books: Rogers’s Political Economy.
Number of students: 128
Number of Sections: 3
Number of exercises per week for students: 1
Number of hours per week for instructor: 3 (for a half-year)

Source: Annual Report of the President of Harvard College, 1871-72, p. 46.

_________________

POLITICAL ECONOMY.

Juniors, February 1872.

  1. What is the difference between price and value?
  2. What is capital, and whence is it derived?
  3. Is a legal tender note of the United States money? If not then what is it?
  4. What effect has an excessive issue of paper currency upon prices?
  5. In an estimate of public wealth, what kinds of individual wealth are excluded? And why?
  6. Why is the rate of interest high in a newly settled western state?
  7. What determines the rate of wages?
  8. What was the theory of Malthus as to the growth of population?
  9. What effect has the introduction of machinery upon the rate of wages?
  10. What is rent and how does it depend upon the cost of production?
  11. In the trade between nations, how is the transmission of gold and silver for the most part avoided?
  12. If there is a scarcity of some article of which there are several qualities of different prices, will the cheapest or the dearest quality rise most? And why?
  13. What is the difference between direct and indirect taxation, and what are their respective advantages?
  14. Why is a tax on raw materials a bad tax?
  15. How does our national debt differ in form from the English, and what advantage has either form?

Source: Harvard University Archives. Mid-year examinations, 1852-1943 (HUC 7000.55), Box 1, Folder “Mid-year examinations, 1871-1872”.

Image: Memorial Hall (ca. 1900), Harvard University from Library of Congress Prints and Photographs Division Washington, D.C.

 

Categories
Exam Questions Harvard

Harvard. Principles of Money and Banking, Midyear Exam. Schumpeter, 1927-1928

 

 

I just returned from a recent trip that included 5.5 working days in the Harvard University Archives. Among the images of treasures for transcription that I have brought back are the mid-year examinations for several decades of Harvard’s year-long economics courses. My first order of business now  has been to add the corresponding mid-year examinations to material already posted for Harvard courses here at Economics in the Rear-view Mirror.

We now add a course taught by the ever popular and ultimate click-bait, Joseph Schumpeter. The final examination questions for his 1927-28 course, Principles of Money and Banking, have been posted earlier. Now we also learn something about what was covered in the first semester of that course.

______________________

1927-28
HARVARD UNIVERSITY
ECONOMICS 38

Mid-Year Examination

  1. Write as fully as possible on either one or the other of the following subjects:
    1. What is the monetary system set up by the English Gold Standard Act of 1925, and how does its working differ from either an unrestricted gold system or the gold exchange standard?
    2. If a bank creates new credit in order to grant a loan, then, so long as the loan remains outstanding, it acts like a tax or compulsion to save imposed on the community jointly by the borrower and the bank. (D. H. Robertson, Money. p. 90) Explain and criticize.
  2. Answer shortly two out of the four following questions:
    1. Some authors think that a system of paper circulation would work more, others that it would work less in accordance with the quantity theorem than the gold standard. Which view is the correct one?
    2. What is the difference between the ‘equation of exchange’ as constructed respectively by Irving Fisher and by Marshall-Pigou-Keynes?
    3. Why and in what sense is bimetallism unstable?
    4. What difference is there between choosing some commodity as a ‘standard of value’ and actually using it as a means of exchange, which physically changes hands?

 

Source: Harvard University Archives. Examination Papers, Mid-Years, 1927-28 (HUC 7000.55), Papers Printed for Mid-Year Examinations. History, History of Religions,… , Economics,… , Military Science, Naval Science. January-February, 1928.

Image Source: Harvard University Archives. “Joseph A. Schumpeter seated on bench in forested area, ca. 1931“.

Categories
Exam Questions Harvard

Harvard. Modern Schools of Economic Thought, Midyear Exam. Schumpeter, 1927-1928.

 

 

I just returned from a recent trip that included 5.5 working days in the Harvard University Archives. Among the images of treasures for transcription that I have brought back are the mid-year examinations for several decades of Harvard’s year-long economics courses. My first order of business now  is to add the corresponding mid-year examinations to material already posted for Harvard courses here at Economics in the Rear-view Mirror.

We begin with a course taught by the ever popular and ultimate click-bait, Joseph Schumpeter. The final examination questions for his 1927-28 course, Modern Schools of Economic Thought, have been posted earlier. Now we know something about what was covered in the first semester of that course.

________________________

1927-28
HARVARD UNIVERSITY
ECONOMICS 15

Mid-Year Examination

  1. Write as fully as possible on either one or the other of the following subjects:
    1. What is the distinctive characteristic of Capitalism and how does the view we have about it influence our capital concept?
    2. The evolution and basic function of the Entrepreneur.
  2. Answer shortly two out of the four following questions:
    1. The substitution of capital for labor means the substitution of labor assisted by much waiting for labor assisted by little waiting. (Marshall) Criticize.
    2. What is meant by the ‘superior bargaining power’ of the entrepreneur and how much does what is meant by it amount to in explaining entrepreneur’s gains?
    3. According to the theory of marginal utility, prices are proportional to marginal utility. According to the Ricardian theory of value prices are—fundamentally—proportional to quantities of labor necessary for the production of commodities. Prove that the second proposition, upon the introduction of suitable assumptions, turns out to be a special case of the first.
    4. A rise in any element of expenses of production is generally held to raise the prices of products. Interest is an element of expenses of production. The rate of discount is obviously a rate of interest. Yet it is held that raising the rate of discount will depress prices. Explain and criticize.

 

Source: Harvard University Archives. Examination Papers, Mid-Years, 1927-28 (HUC 7000.55), Papers Printed for Mid-Year Examinations. History, History of Religions,… , Economics,… , Military Science, Naval Science. January-February, 1928.

Image source: Joseph A. Schumpeter at table with books, photograph, ca. 1930. Detail from image posted at Harvard University Archives. Joseph Schumpeter Papers. HUGBS 276.90p (38).

Categories
Columbia Exam Questions History of Economics

Columbia. Types of Economic Theories, Exam questions. W. C. Mitchell, 1914, 1923-37

 

 

This post provides about two dozen examinations I have found for the legendary course “Types of Economic Theory” that was taught for several decades at Columbia University by Wesley Clair Mitchell. Given the enormous work Mitchell clearly put into this course, judging from the vast archival record of his notes, I am rather struck by the utter lack of imagination reflected in the examination questions. A single good secondary text would have been enough to ace his exams. Maybe students were different then and required no incentive to read original texts and attend lectures…yeah, right.

Stenographic student notes for the course  were originally prepared by John Meyers during 1926-27 with new editions prepared periodically up through the Spring session 1935. These mimeographed and bound lecture notes were later edited by Joseph Dorfman and reprinted by Augustus M. Kelley. Volume I (1967) can be borrowed for two weeks at a time at the archive.org website; Volume II (1949) is available at the hathitrust.org web site.

Lecture Notes on Types of Economic Theory, Volume I. New York: Augustus M. Kelley, 1967.
(Mercantilism, Smith, Bentham, Malthus, Ricardo, Philosophical Radicals, John Stuart Mill). 

Lecture Notes on Types of Economic Theory, Volume II. New York: Augustus M. Kelley, 1949.
(Jevons, Marshall, Fetter, Davenport, Von Wieser. Schmoller, Walras, Cassel, Veblen, Hobson, Commons).

Finding aid for the Wesley Clair Mitchell papers, 1898-1953. at Columbia University Archives.

______________

Types of Economic Theory
Special Examination for Mr. Hall [?]
Jan. 27, 1914.

  1. Expound Bentham’s theory of how men’s actions are determined.
  2. Explain the character of the economic man as found in Ricardo’s “Principles.”
  3. What, if anything, did Senior add to the concept of the economic man?
  4. What evidence of Bentham’s, of Ricardo’s, and of Senior’s influence do you find in J. S. Mill’s Principles of Political Economy?

Please return this paper with your answers to
W. C. Mitchell, 37 W. 10thStreet.

Source: Columbia University Libraries, Manuscript Collections. Mitchell, W.C. Collection, Box 1, Folder “A529, 1/27/14”.

______________

Examination (10 copies)
Economics 121
January 25, 1923
1:15 p.m. 614 Kent

  1. Give a brief sketch of Adam Smith’s life, with special reference to the experiences which prepared him for writing the “Wealth of Nations”.
  2. How did Malthus come to write his “Essay on the Principle of Population”? How does the second edition differ from the first?
  3. What bearing had Jeremy Bentham’s work on the development of economic theory?
  4. Outline Ricardo’s theory of distribution. How did he demonstrate his “laws”?
  5. Who were the Philosophical Radicals? What did they do?

161 W. 12thSt.

Source: Columbia University Libraries, Manuscript Collections. Mitchell, W.C. Collection, Box 2, Folder “A60, 1/25/23”.

______________

Economics 121
Types of Economic Theory
Professor Mitchell
(50 copies desired)

  1. Sketch Adam Smith’s life, pointing out the experiences which influenced the development of his economic theory.
  2. What was Bentham’s felicific calculus, and what interest has it for economists?
  3. What effect did the struggle over the corn laws in 1812-15 have upon the development of English economic theory?
  4. Expound Ricardo’s theory of distribution.
  5. Who were the Philosophical Radicals and for what did they stand?

Source: Columbia University Libraries, Manuscript Collections. Mitchell, W.C. Collection, Box 2, Folder “A16, 2/8/23”.

______________

Economics 121
Deficiency Examination
April 8, 1924

  1. Who were the Physiocrats? What influence did their views have upon the Wealth of Nations?
  2. How did the French Revolution affect the development of economic theory in England?
  3. Give an account of the Corn-Law struggle in 1812-15, and show its influence upon Classical political economy.
  4. & 5. State the leading differences between economic theory as expounded by Adam Smith and Ricardo.

Source: Columbia University Libraries, Manuscript Collections. Mitchell, W.C. Collection, Box 2, Folder “A61, 4/8/24”.

______________

Economics 121
Types of Economic Theory
Deficiency Examination
April 25, 1924

  1. Discuss the question whether Ricardo held an “iron law” of wages.
  2. State briefly who the following persons were and what relation they had to the development of economic theory.
    David Hume; S. de Sismondi; J. B. Say;
    Sir James Steuart; Richard Jones; Francis Place;
    R. J. Turgot; Thomas Tooke; J. R. McCulloch;
    Jeremy Bentham
  3. What bearing had the Industrial Revolution on the rise of economic theory?
  4. Just what did the term “distribution of wealth” mean to Ricardo?
  5. What distinction did J. S. Mill make between the character of the laws of distribution and of production, and what importance did he attach to this distinction?

Source: Columbia University Libraries, Manuscript Collections. Mitchell, W.C. Collection, Box 2, Folder “A62, 4/25/24”.

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Economics 122
Types of Economic Theory.
Final Examination
1:10 p.m. May 16th1924

  1. What are the chief differences between the “mechanics of utility,” as developed by Jevons, and classical political economy?
  2. How far is Marshall able to carry his analysis of prices back to what he calls “real forces”?
  3. Compare the types of economic theory represented by Davenport and Veblen.
  4. Discuss the possibility of developing a scientific treatment of economic welfare.
  5. Along what lines do you think we should endeavor to develop economic theory in the near future?

Source: Columbia University Libraries, Manuscript Collections. Mitchell, W.C. Collection, Box 2, Folder “A63, 5/16/24”.

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Examination
Types of Economic Theory
Economics 121
Tuesday, January 27, 1925

  1. State the leading contents of “The Wealth of Nations”.
  2. Sketch the historical background of Malthus’ “Essay on the Principle of Population.”
  3. What is the classical theory of rent, and what led to its development?
  4. Who were the Philosophical Radicals and what did they do?
  5. Compare Ricardo’s and John Stuart Mill’s treatises on Political Economy.

Source: Columbia University Libraries, Manuscript Collections. Mitchell, W.C. Collection, Box 2, Folder “A57, 1/27/25”.

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Economics 122
Types of Economic Theory
Final Examination
Saturday, May 23, 1925
1:00 p.m. 309 Business.

  1. Characterize briefly the chief types of economic theory now current.
  2. Compare the theory of prices as expounded by Davenport with the theory of prices as expounded by Jevons.
  3. Why is the theory of production little emphasized in recent economic treatises?
  4. State the chief contributions to economic theory made by Marshall and Veblen.
  5. Draw up a brief outline of the topics which you think a treatise on economic theory should cover.

Source: Columbia University Libraries, Manuscript Collections. Mitchell, W.C. Collection. Box 2, Folder “A54, 5/23/25”.

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Economics 121
Types of Economic Theory
Mid-year Examination
Thursday, Jan. 27, ‘29
1:10 p.m. 401 Fayerweather

  1. What contact did Adam Smith make with the Physiocrats? What influence did this contact have upon the Wealth of Nations?
  2. Discuss the connection between social developments in England and the Malthusian theory of population.
  3. Compare the scope of economic theory as presented in Ricardo’s Principles of Political Economy and Taxation and in the Wealth of Nations.
  4. In what way did Jeremy Bentham influence the development of economic theory?
  5. Discuss the history of political economy in England between Ricardo’s death and 1848.
  6. Explain the significance of what John Stuart Mill held to be the most important innovation in his Principles of Political Economy.

 

Special examination, March 16
[handwritten notes]

  1. Expound Adam Smith’s “obvious and simple system of natural liberty.”
  2. Who discovered the classical theory of rent, and under what circumstances?
  3. Who were the leading figures among the Philosophical Radicals? What did they attempt to accomplish in social science and in social life?
  4. Contrast the methods of economics practiced by Malthus and Ricardo.
  5. What is the wages-fund doctrine? Point out its most serious shortcomings as an explanation of the process by which wages are determined.

Source: Columbia University Libraries, Manuscript Collections. Mitchell, W.C. Collection, Box 2, Folder “A55, 1/27/27”.

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Economics 122
Final Examination
May 14, 1927
1:30 p.m. 301 F.

  1. Discuss the dictum: “…a special theory of value is at least quite unnecessary in economic science.”
  2. Contrast the types of economic theory represented by Fetter and Veblen.
  3. What advantage, if any, can an economic theorist derive from the study of psychology? of history?
  4. What are the characteristics of Marshall’s theory which differentiate it from the other types studied?
  5. Why has the production of wealth ceased to be a leading topic of economic theory? Do you think more attention should be paid to that problem in the near future? Why?

Source: Columbia University Libraries, Manuscript Collections. Mitchell, W.C. Collection,  Box 2, Folder “A56, 5/14/27”.

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Economics 121
Types of Economic theory
Examination
February 2d, 1928
1:10 p.m. Fayweather

  1. Compare the types of economic theory represented by Davenport and Cassel.
  2. Discuss Fetter’s attempt to eliminate “the old utilitarianism and hedonism which have tainted the terms and conceptions of values ever since the days of Bentham?”
  3. How does Veblen’s treatment of human nature differ from Marshall’s treatment?
  4. Is there a significant difference between the conception of economics developed by the historical school and by the “institutional theorists”?
  5. What implications do you see in the contention that economics is one of the sciences of human behavior?

Source: Columbia University Libraries, Manuscript Collections. Mitchell, W.C. Collection,  Box 2, Folder “A58, 2/2/28”.

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Economics 121
Types of Economic Theory

  1. Discuss the relations between the Wealth of Nations and economic conditions during the 18th century in Great Britain.
  2. What bearing had the work of Jeremy Bentham on the development of classical political economy?
  3. Outline Ricardo’s theory of value.
  4. Discuss the development of economic theory in England between 1817 and 1848.
  5. Compare the conditions influencing the development of industrial technique and of economic theory.

Source: Columbia University Libraries, Manuscript Collections. Mitchell, W.C. Collection, Box 2, Folder “A59, 1/29/29”.

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Economics 121
Types of Economic Theory
Examination
1:10 p.m., January 28, 1930

  1. Outline briefly the Wealth of Nations
  2. Compare the treatment of distribution by Adam Smith and Ricardo.
  3. State John Stuart Mill’s view of the “principle of population”
  4. Sketch the development of political economy between Ricardo’s death and 1848.
  5. What is the “felicific calculus”?

Source: Columbia University Libraries, Manuscript Collections. Mitchell, W.C. Collection, Box 2, Folder “A64, 1/28/30”.

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COLUMBIA UNIVERSITY
Economics 122
TYPES OF ECONOMIC THEORY
[handwritten note: “Final Exam May 1930”]

  1. Discuss the treatment of “real forces” in economic activity by Jevons, Marshall and Davenport.
  2. Compare the psychological concepts used by Schmoller, Fetter and Veblen.
  3. Sketch the argument of Hobson’s welfare economics.
  4. Compare the framework of economic theory presented in John Stuart Mills’ and in Marshall’s “Principles”.
  5. Discuss the question whether the theory of value should be excluded from economics.

 

Source: Columbia University Libraries, Manuscript Collections. Mitchell, W.C. Collection, Box 2, Folder “A397, 5/?/30”.

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Deferred examination in Economics 121.
April 15, 1931

  1. What was the Corn Law controversy in Great Britain and what bearing did it have upon the development of economic theory?
  2. Discuss John Stuart Mills’ treatment of the theory of value.
  3. What is the relationship between the theory of value and the theory of distribution in Ricardo?
  4. Compare the views of Adam Smith and Malthus on the population problem.

Source: Columbia University Libraries, Manuscript Collections. Mitchell, W.C. Collection, Box 2, Folder “A53, 4/15/31”.

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Economics 122
Types of Economic Theory
Examination, 9 A.M.
May 19, 1931
301 Fayerweather

  1. Compare the scope of economic theory as presented by Marshall, Schmoller and Davenport.
  2. What do you understand “institutional economics” to be?
  3. Expound Fetter’s theory of interest.
  4. What is the central problem of economic theory according to Cassel, and how does he attack it?
  5. What advances has economic theory made since the days of Ricardo?

Source: Columbia University Libraries, Manuscript Collections. Mitchell, W.C. Collection, Box 2, Folder “A359, 5/19/31”.

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ECONOMICS 121
TYPES OF ECONOMIC THEORY
Examination, 4:10 p.m., January 31, 1933, 410 Fayerweather

  1. Discuss the relation between the development of economic theory and of economic life in England from the time of Adam Smith to the time of Ricardo.
  2. Expound Malthus’ “principle of population”.
  3. Analyze Ricardo’s method of developing economic theory.
  4. What did J. S. Mill regard as the chief contribution to economic theory. Why did he attribute great importance to this idea?
  5. Compare the theories of value presented by Ricardo and by Jevons.

 

Source: Columbia University Libraries, Manuscript Collections. Mitchell, W.C. Collection, Box 3, Folder “A49  1/31/33”.

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COLUMBIA UNIVERSITY
Examination…..Economics 122…..Types of Economic Theory
1:10 p.m. Thursday, May 25, 1933

  1. Show how Marshall integrated economic theory
  2. Compare the types of economic theory developed by Davenport and Cassel.
  3. What is “institutional economics?”
  4. Can historical study contribute to economic theory? Give reason for your answer.
  5. Discuss the relations between economics and psychology.

Source: Columbia University Libraries, Manuscript Collections. Mitchell, W.C. Collection, Box 3,  Folder “A399  5/25/33”.

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ECONOMICS 121
Types of Economic Theory
1.10 p.m. January 30, 1934

  1. Discuss the influence of economic developments in England upon the theoretical work of Smith, Malthus and Ricardo.
  2. Discuss the influence of the work of these men upon economic developments.
  3. Present the felicific calculus.
  4. Sketch the working conceptions of human nature entertained by William Godwin, Malthus and John Stuart Mill, and show how those conceptions shaped their theorizing.
  5. Give a brief summary of Ricardo’s leading propositions.

Source:  Columbia University Libraries, Manuscript Collections. Mitchell, W.C. Collection, Box 3, Folder “A50  1/30/34”.

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Economics 122
TYPES OF ECONOMIC THEORY
Final examination
1.10 p.m. Friday, May 25, 1934
302 Fayerweather

  1. Discuss the scope of economics as represented by Davenport and Schmoller.
  2. What were Marshall’s chief contributions to the development of economic theory?
  3. State your conception of “institutional” economics.
  4. Compare the psychological views of Jevons and Fetter.
  5. Expound Cassel’s theory of pricing.

Source:  Columbia University Libraries, Manuscript Collections. Mitchell, W.C. Collection, Box 3, Folder “A398  5/25/34”.

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ECONOMICS 121
TYPE OF ECONOMIC THEORY
[28 January 1935]

  1. State Adam Smith’s argument for adopting “the simple and obvious system of natural liberty.” What bearing has it upon national economic planning?
  2. Discuss the conceptions of human nature implied by Ricardo’s theories of rent, profits, and wages.
  3. What do you understand by “the levels of analysis” in economic theory?
  4. Compare the expectations concerning “the futurity of the laboring classes” entertained by Ricardo and John Stuart Mill.
  5. Contrast the methods of inquiry employed by Malthus and Ricardo.

Source: Columbia University Libraries, Manuscript Collections. Mitchell, W.C. Collection, Box 3, Folder “A51  1/28/35”.

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FINAL EXAMINATION IN TYPES OF ECONOMIC THEORY
Economics 122
Tuesday, May 21, 1935
301 Fayerweather

  1. State and discuss the merits of the program for rebuilding economic theory developed by the Historical School.
  2. Compare the types of economic theory represented by Marshall and by Cassel.
  3. Discuss Veblen’s critique of orthodox economic theory.
  4. Compare the types of economic theory represented by Fetter and by Davenport.
  5. What in your opinion are the leading problems of economic theory?

Source:  Columbia University Libraries, Manuscript Collections. Mitchell, W.C. Collection, Box 3, Folder “A396  5/21/35”.

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EXAMINATION IN ECONOMICS 121
TYPES OF ECONOMIC THEORY
[Handwritten note:  Jan. 1936]

  1. Give an outline of the Wealth of Nations.
  2. Sketch Ricardo’s theory of distribution.
  3. Compare the implications of the “principles of population” for the future of mankind as seen by Malthus and by J. S. Mill.
  4. Discuss the “levels of analysis” in J. S. Mill’s Principles of Political Economy.
  5. Compare the methods of establishing economic propositions employed by Malthus and Ricardo.

.Source:  Columbia University Libraries, Manuscript Collections. Mitchell, W.C. Collection, Box 3, Folder “A65  1/?/36”

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ECONOMICS 121
TYPES OF ECONOMIC THEORY
Examination Jan. 23, 1937
1:10 p.m. Fayerweather Hall

  1. State and discuss Adam Smith’s argument for “the obvious and simple system of natural liberty”.
  2. What relation does Bentham’s felicific calculus have to economic theory?
  3. Compare the conceptions of human nature entertained by Malthus and by John Stuart Mill.
  4. What position does the theory of distribution hold in the economic theory of Adam Smith, Ricardo and Mill?
  5. Expound briefly Mill’s theory of value and point out its chief limitations.

Source: Columbia University Libraries, Manuscript Collections. Mitchell, W.C. Collection, Box 3, Folder “A52 1/23/37”.

Image Source: Wesley Clair Mitchell from Albert Arnold Sprague’s and Claudia C. Milstead’s Genealogical Website.

 

 

Categories
Exam Questions Harvard Undergraduate

Harvard. Examination questions for Political Economy I, 1884-1888.

 

 

 

With this post we add about fifty new questions to our growing stock of Harvard economics examinations. Nine of the sixty-three questions transcribed below are identical or nearly identical to those found in the 310 questions appended to Laughlin’s abridged version of John Stuart Mill’s Principles that served as the course textbook at Harvard at the end of the 19th century.

See:  Principles of political economy, by John Stuart Mill. Abridged with critical, bibliographical, and explanatory notes, and a sketch of the history of political economy by, J. Laurence Laughlin. New York: D. Appleton, 1884.

The new questions come from what we would today call a “Student’s Guide” to the Mill/Laughlin textbook. He called the printed 72-pages a “Synopsis”.

________________________

About Laughlin’s “Student’s Guide to John Stuart Mill”

This Synopsis is intended to replace the text book in preparing for the examinations, but it will also be found extremely useful during the year in answering the weekly written questions. The index at the end has been prepared especially for use in connection with the examination papers contained in the appendix to this book, and in the second appendix to the text book.

A Synopsis of the First Three Books of John Stuart Mill’s Principles of Political Economy, as revised by Prof. J. L. Laughlin with an appendix containing the recent examination papers in Political Economy I. Cambridge, Mass.: W. H. Wheeler, 1888.

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PAPERS SET FOR EXAMINATION IN POLITICAL ECONOMY I.
[# in Laughlin’s list of 310 questions (1884)]

1883-1884.

  1. Explain carefully the following terms: production, consumption, effectual demand, margin of cultivation, cost of production, value of money, cost of labor, wealth, and abstinence. [#2, virtually identical]
  2. What conclusion as to the limit to the increase of production does Mr. Mill deduce from his investigation of the laws of the various requisites of production? [#54]
  3. Explain clearly how it is possible for the land of a country which is all of a uniform fertility to pay rent. [#105]
  4. Point out distinctly the connection between the money wages of laborers in the United States and the productiveness of the soil. [#244]
  5. Explain the operation of the laws of value by which the relative prices of wool and mutton would be regulated. [#194]
  6. Why is it necessary to make any different statement of the laws of value for foreign than for domestic products? What is the cause for the existence of any international trade? [#199]
  7. (1) What is the true theory of one country underselling another in a foreign market? (2) What weight should be attributed to the fact of generally higher or lower wages in one of the competing countries? [#241]
  8. If capital continued to increase and population did not, explain the proposition that “the whole savings of each year would be exactly so much subtracted from the profits of the next and of every following year.” [#254, virtually identical]
  9. Give the arguments for and against the income tax. Would the tax on any kinds of income not fall upon the persons from whom it was levied? Explain.
  10. Define the term banking-reserve. What is the theory on which only a small part of the total resources is constantly kept as a reserve? What relation exists between the items of deposits, loans, and reserve?
  11. Explain the provisions of the Resumption Act, and show how the actual results were produced.
  12. Was the issue of greenbacks in February, 1862, an actual necessity?

 

1885-1886.

  1. Explain what is meant by the “standard of living” of the laboring class. In a densely populated country would the standard of living have any influence on the general rate of wages?
  2. Show clearly why there must be land in cultivation which pays no rent.
  3. Explain carefully the relation between Cost of Labor and Real Wages. How can an increase of population affect Cost of Labor?
  4. Under what conditions can it be said that normal value depends on the “expenses of production”? State the law of market and normal value for commodities affected by the law of diminishing returns.
  5. Explain the reason for the existence of foreign trade. Is there any different reason for the exchange of goods in domestic trade?
  6. What is inconvertible paper money? From the history of the United States notes state the main events showing the attitude of Congress towards their issue, while the notes were inconvertible.
  7. Why is a bank obliged to limit its loans when its cash reserve is seriously impaired?
  8. Why is it that the products of extractive industries are liable to great variations of market value?
  9. Upon whom would a tax on Rent fall? Would such a tax be a discriminating tax on the agricultural interests?
  10. What are the advantages of direct taxation? State by what kinds of taxation, direct or indirect, the United States gets its revenue.
  11. Is it correct to say that high wages alone prevent us from selling manufactured goods in foreign markets!

 

1886-1887.

  1. Compare the economic effects of defraying war expenditures by loans and by taxation. [#33, virtually identical]
  2. Does the rent of a factory building affect the value of the goods made in it? Does the rent of a farm affect the value of the grain grown on it? Does the rent paid for a lot near a great city, from which gravel is taken, affect the value of the gravel?
  3. It has been said that “the laws and conditions of the production of wealth partake of the character of physical truths. There is nothing optional or arbitrary in them.” State briefly the laws of the production of wealth here referred to, and whether the statement in regard to them is true.
  4. It has been said that the law of population and the law of diminishing returns from land point inevitably to misery and want as the destiny of the mass of mankind. What influence affecting the operation of these laws are to be taken into account; and if they are taken into account, are the laws of population and diminishing returns from land thereby shown to be invalid?
  5. Explain briefly the nature of the remuneration received by the following persons: a farmer tilling his own land; a merchant carrying on business with his own capital; a manufacturer carrying on business with borrowed capital; a holder of railway stocks; a holder of government bonds; a patentee.
  6. Wherein is the value of metallic money governed by different principles from those that regulate the value of commodities in general? And wherein is the value of inconvertible paper money governed by different principles from those that regulate the value of coin?
  7. Credit is said to be purchasing power. Explain what is meant by this proposition, and in what manner it bears on the theory of the value of money. Point out in what form credit, as purchasing power, is most likely to affect prices in the United States and in France.
  8. (a) Suppose that:
    In the U. S. one day’s labor produces 2 bushels of corn;
    In the U. S. one day’s labor produces 10 yards of cotton cloth;
    In England one day’s labor produces 1 bushel of corn;
    In England one day’s labor produces 5 yards of cotton cloth.
    Would trade arise between England and the United States? If so, how?
    (b) Suppose that in England one day’s labor produced 8 yards of cotton cloth, other conditions remaining the same as in (a). Would trade arise? If so, how?
    (c) Suppose that in England one day’s labor produced 2 yards of cotton cloth, other conditions remaining the same as in (a). Would trade arise? If so, how?
  9. Suppose a new article to appear among the exports of a given country. Trace the effects in that country on the course of the foreign exchanges; on the flow of specie; on the value of money; on the terms of international exchange. Would the results be the same if, instead of a new article of export, some article previously exported were to be sold abroad in larger quantity because of a lowering of its cost and price?
  10. (a) Arrange in proper order the following items of a bank account: Loans, $538,000; Bonds and Stocks, $40,000; Capital, $200,000; Real Estate, $26,000; other assets, $26,000; Surplus, $65,100; Deposits $440,000; Notes, $101,550; Cash, 124,000; Cash Items, $52,650.
    (b) Suppose the bank to discount four months paper (at 6 per cent) to the amount of $10,000 of which it purchases one-half by promises to pay the bearer on demand, and one-half by cash. How would the account then stand?
    (c) Suppose a borrower to have repaid a loan of $2000 by giving $1000 in cash, and $1000 in a cheque on the bank. How would the account then stand?
    (d) Suppose the bank to be confronted, in a time of general embarassment, with demands from depositors for cash, and from borrowers for discounts. What policy would be adopted if it were the Bank of England? if it were a United States national bank?

 

1886-1887.

DIVISION A.

  1. If taxes levied on the rich cause a diminution in their unproductive expenditure, would that in any way affect the employment offered for labor? Discuss fully.
  2. What principle does Mr. Mill furnish by which the respective shares of labor and capital are determined? Has his Wages-Fund Theory any connection with his exposition of the dependence of “profits” on Cost of Labor?
  3. In discussing the distribution of the product, why is it that the relative shares of labor and capital can be discussed independently of rent? Would an increase of rent affect the share of labor or of capital?
  4. Why is it that city banks make a greater use of the deposit liability than of the note liability? Why is the fact just the reverse with country banks?
  5. State fully the difference between Cost of Labor and Cost of Production. Would a decrease in Cost of Production affect Cost of Labor in any way?
  6. If the returns, and consequently wages, in our extractive industries were to decline, how would the course of our foreign trade probably be affected?
  7. Explain carefully how, and under what conditions, Reciprocal Demand regulates Normal Value.
  8. How do you reconcile the doctrine of comparative cost in international trade with the fact that a merchant regulates his conduct by a comparison of prices at home with prices abroad?
  9. Explain how a tax on “profits” may fall either (1) on the laborer, or (2) on the landlord.
  10. Discuss the argument that protection raises wages.
  11. Is the customs-duties on sugar economically justified?

 

DIVISION B.

  1. Suppose the price of silver to rise to such a point that the ratio of silver to gold would be 15 to 1, what change would take place in the money at present in use in the United States? Is such a change probable? if so, why? if not, why not?
  2. State the essential differences between the coinage acts of 1792, 1834, and 1878.
  3. “All experience has shown that there are periods when, under any system of paper money, however carefully guarded, it is impracticable to maintain actual coin redemption. Usually contracts will be based on current paper money, and it is just that, during a sudden panic or an unreasonable demand for coin, the creditor should not be allowed to demand payment in other than the currency in which the debt was contracted. To meet this contingency, it would seem to be right to maintain the legal tender quality of United States notes. If they are not at par with coin, it is the fault of the Government and not of the debtor, or rather it is the result of an unforeseen stringency not contemplated by the contracting parties.” From the Report of the Treasury, dated December, 1887.
    Under what circumstances was this passage written? Is the recommendation made by it a wise one? Has it been acted on?
  4. Ten men club together to buy flour at wholesale, each taking a part and paying his share of the price. Ten others club together, borrow money jointly, and lend it out to themselves for aid in carrying on their trades. A third ten club together, set up a work shop on joint account and work in it, and periodically divide the net proceeds. What kinds of cooperation are typified, respectively, by these proceedings? In what countries has each kind been most widely applied? Which seems to you to be of greatest intrinsic interest for the social question?
  5. What is meant by the eight-hour law? Wherein does it resemble, and wherein differ from, factory legislation in England?
  6. Compare the regulations of the Knights of Labor in regard to strikes with those of an English Trades-Union.
  7. “The present doctrine is that the workman’s interests are linked to those of other workmen, and the employer’s interests to those of other employers. Eventually it will be seen that industrial divisions should be perpendicular, not horizontal.” Explain what is meant by this passage; state by what devices it is endeavored to promote the ” horizontal ” and the “perpendicular” divisions, respectively; and give an opinion as to which line of division is likely to endure.
  8. The declaration of principles of Knights of Labor demands “the enactment of laws providing for arbitration between employers and employed, and to enforce the decision of the arbitrators.” Is it desirable to comply with that demand in whole, in part, or not at all?
  9. Suppose a tax were levied of ten per cent on the house-rent paid by every person, those who occupied their own houses being assessed for the letting value of their dwellings. Would such a tax be direct or indirect? Would it conform to the principle of equality of taxation? Give your reasons.

 

1887-1888.
Mid-year. 1888.

  1. Is productive consumption necessarily consumption of capital? Can there be unproductive consumption of capital?
  2. Distinguish which of the following commodities are capital, and, as to those that are capital, distinguish which you would call fixed capital and which circulating.
    A ton of pig iron; a plough; a package of tobacco; a loaf of bread; a dwelling-house.
    Can you reconcile the statement that one or other of these commodities is or is not capital with the proposition that the intention of the owner determines whether an article shall or shall not be capital?
  3. Suppose an inconvertible paper money to be issued, of half the amount of specie previously in circulation. Trace the effects (1) in a country carrying on trade with other countries, (2) in a country shut off from trade with other countries.
  4. Explain in what manner the proposition that the value of commodities is governed by their cost of production applies to wheat, to iron nails, and to gold bullion.
  5. Explain the proposition that rent does not enter into the cost of production. Does it hold good of the rent paid for a factory building? Of the rent paid for agricultural land?
  6. It has been said that wages depend (a) on the price of food, (b) on the standard of living of the laborers, (c) on the ratio between capital and population. Are these propositions consistent with each other? Are they sound?
  7. Suppose that
    One day’s labor in the United States produces 10 pounds of copper,
    One day’s labor England produces 8 pounds of copper,
    One day’s labor in the United States produces 5 pounds of tin,
    One day’s labor England produces 5 pounds of tin,
    Would trade arise between England and the United States, and if so, how?
    Suppose that, other things remaining as above, one day’s labor in England produced 12 pounds of copper, would trade arise, and if so, how?
  8. Explain what is meant when it is said that “there are two senses in which a country obtains commodities more cheaply by foreign trade: in the sense of value, and in the sense of cost.”
  9. Arrange in proper order the following items of a bank account: Capital, $300,00; Bonds and Stocks, $35,000; Real estate and fixtures, $20,000; Other assets, $20,000; Surplus, $80,000; Undivided Profits, $10,500; Notes, $90,000; Cash, $110,000; Cash items, $90,000; Deposits, $850,000; Loans, $1,050,000; Expenses, $5,500. ,
    Suppose loans are repaid to this bank to the amount of $100,000. One half by cancelling deposits, one quarter in its own notes, and one quarter in cash; how will the account then stand?
  10. What is the effect of the use of credit on the value of money? Wherein does credit in the form of bank deposits exercise an effect on the value of money different from that of credit in the form of bank notes?

 

Source: A Synopsis of the First Three Books of John Stuart Mill’s Principles of Political Economy, as revised by Prof. J. L. Laughlin with an appendix containing the recent examination papers in Political Economy I. Cambridge, Mass.: W. H. Wheeler, 1888.

Image Source: James Laurence Laughlin. University of Chicago Photographic Archive, apf1-03687, Special Collections Research Center, University of Chicago Library.

Categories
Exam Questions Harvard Suggested Reading Syllabus

Harvard. Outline and final exam. Economic and Political Ideas, Taylor. 2nd term, 1947-48

 

 

 

 

 

 

Overton H. Taylor described his book, A History of Economic Thought: Social Ideals and Economic Theories from Quesnay to Keynes (McGraw-Hill, 1960), as “an outgrowth from, or reduction to book form of, a part of the course of lectures, covering the same ground, which I have given annually for many years at Harvard University.”  This post provides the undergraduate course outline and final examination for the second half of his course that began with mercantilism and ended with New Deal liberalism and Keynesian economics.

Material from the first half of the course for the immediately following academic year (covering much the same material but stopping at the end of the 19th century) has been posted earlier:

Syllabus. Economics 115 (Fall Term, 1948-49). Economics and Political Ideas in Modern Times.

Final Exam. Economics 115 (Fall Term, 1948-49). Economics and Political Ideas in Modern Times

A much earlier version of the material for a one semester course has likewise been posted:

Syllabus. Economics 1b (Spring Term, 1940-41). The Intellectual Background of Economic Thought.

Final Exam. Economics 1b (Spring Term, 1940-41). The Intellectual Background of Economic Thought.

Greater emphasis on the economic theory was given in his graduate course:

Syllabus. Economics 205a (Fall Term, 1948-49). Main Currents of Thought in Economics and Related Studies over Recent Centuries.

In the Preface to his 1960 book Taylor described his purpose in writing as follows:

Perhaps I have a desire to be a ‘missionary’ in both directions–to convert as many noneconomist or lay readers as I can into interested students of economic theory and its history, and to convert more fellow-economists into interested students, also, of the diverse, general views or perspectives on all human affairs which formerly concerned all philosophical political economists.

 

________________________

 

Course Enrollment

[Economics] 15a. Dr. Taylor.—Economics and Political Ideas in Modern Times (F).

Total 100: 5 Graduate, 44 Seniors, 40 Juniors, 8 Sophomores, 1 Radcliffe, 2 Other.

 

[Economics] 15b. Dr. Taylor.—Economics and Political Ideas in Modern Times (Sp).

Total 33: 2 Graduates, 18 Seniors, 8 Juniors, 1 Sophomore, 2 Radcliffe, 2 Public Administration.

 

Source: 15a, Fall term ; 15b, Spring term: Harvard University. Report of the President of Harvard College, 1947-48, pp. 68, 89.

________________________

Economics 15b (115)
Spring Term, 1948
Outline

I. February 5 — 14. 17th Century Political Absolutism and Mercantilism. Liberalism.

Reading due February 14:

(1) Hobbes Leviathan, Chs. 1-6, incl.; 13, 14, 15, 17, 18, 21, 24;
(2) Locke, Civil Government II, Chs. 2, 3, 5, and 7-12, Incl.; and
(3) Gray, Economic Doctrines, Chs. 1-3.

Lectures

Th., Feb. 5, Introductory lecture about the course.

Sat, Feb. 7, Western civilization in the 17th Century, and the philosophy and political theory of Hobbes.

Tu., Feb. 10, Mercantilism and its economic theory.

Th., Feb. 12, 18th Century liberalism vs. political absolutism and mercantilism; and Locke’s theory of the free society.

Discussion

Sat., Feb. 14, Class discussion of the reading in Hobbes, Locke, and Gray.

II. February 17 — 28. 1705-1850. Foundations of the Classical, Liberal Theory of Political Economy.

Reading due February 28:

(1) Adam Smith, Theory of Moral Sentiments: Part I, sec. I, and Part II, secs. I, II or (1a) Selby-Bigge, British Moralists, Selection from A. Smith, Moral Sentiments;
(2) Adam Smith, Wealth of Nations, Book I, 1-7, incl.

Lectures

Tu., Feb. 17 Newton, Locke, and the 18th century’s vision of “the natural order.”

Th., Feb. 19 The philosophy and economic theory of the Physiocrats.

Sat., Feb. 21 Adam Smith’s philosophy, theory of morals and law, and economic theory.

Tu., Feb. 24 Hume and Bentham vs. natural law. Utilitarian liberalism.

Th., Feb. 26 Malthus and Ricardo. The classical theory of political economy.

Discussion

Sat., Feb. 28 Class discussion of the Adam Smith reading.

III. March 2 — 13. Early 19th Romantic and Positivistic Attacks and Alternatives.

Reading due March 13

(1) Spann, History of Economics, Chs. [no chapters given, but would appear to be Spann’s Chapter 8A of the 1930 translation “Types of Economic Theory”]
(2) Comte, Positive Philosophy, pp.[no pages given, but note Introd. Ch. 1; Book VI, 1, 2 were assigned by Taylor in his graduate course Econ 205a]
(3) J. S. Mill, Essays, Utilitarianism, and Liberty.

Lectures

Tu., March 2, The romantic movement and the anti-liberal reaction.

Th., March 4, Carlyle and Ruskin vs. the economists and utilitarians.

Sat., March 6, The romantic reaction in Germany, and types of political and economic thought it produced there.

Tu., March 9, August Comte’s philosophy, and critique of the classical, liberal economic theory.

Th., March 11, Early socialism; and J. S. Mill’s attempted synthesis.

Discussion

Sat., March 13, Class discussion of the Spann, Comte, and Mill reading.

IV. March 16 — 27. Marxism.

Reading due March 27:

Burns, Handbook of Marxism, Chs. [no chapters given here, but note Chs. 1, 13, 14, 22, 26, 29, 30 were assigned by Taylor in his graduate course Econ 205a]

Lectures

Tu., March 16, Antecedents and elements of Marxism: “utopian” socialism, Hegel’s philosophy of history, and Ricardo’s economic theory.

Th., March 18, Marx: theory of history.

Sat., March 20, Marx: economic theory of capitalism: value, wages, and profits.

Tu., March 23, Marx: theory of capitalism’s destined evolution and self-destruction.

Th., March 25, Marx: theory of the revolution and the new society.

Discussion

Sat., March 27, Discussion of the Marx reading.

March 28—April 4, Spring Recess

V. April 5 — 17. 1870-1914. Victorian Conservative Liberalism and Neo-Classical Economics.

Reading due April 17:

(1)  C. Brinton, English Political Thought in the 19th Century, Ch. III, Secs. 1, 2; IV, 1, 2, 3, 4; and
(2) A. Marshall, Principles of Economics, Book I, Chs. 1-3; III; IV, Chs. 1-3 and 8-13; and V, Chs. 1-5.

Lectures

Tu., April 5, The epoch and ideology of Victorian conservative liberalism.

Th., April 7, The renaissance and new ideas of liberal economic theory in this epoch. The discoverers of “marginal utility”—Jevons, the Austrians, Walras, and Marshall.

Sat., April 9, The market mechanism of the free economy and its equilibrium.

Tu., April 13, Marginal productivity and incomes; Clark and Carver.

Th., April 15, Alfred Marshall.

Discussion

Sat., April 17, Discussion of the political ideas of Brinton’s Victorians, and Marshall’s economics.

VI. April 20 — May 1. Present Day Ideologies and Economic Theory.

Reading due May 1:

(1) Sabine, History of Political Theory, Chs. 28 to end of book, omit 31;
(2) John Dewey, Liberalism and Social Action; and
(3) Beveridge, Full Employment in a Free Society, Part II, Sec. 2, and III through Sec. 5.

Lectures

Tu., April 20, Russian Communism versus Democracy and Liberal Capitalism or Liberal Socialism.

Th., April 22, Ideas of and about Fascism.

Sat., April 24, From 19th century to present day Liberalism.—continuity and contrast. The New Deal and the American tradition.

Tu., April 27, The economic theory of monopolistic competition, and liberal policy.

Th., April 29, “Keynesian” economic theory, and liberal policy.

Discussion

Sat, May 1, Discussion of the Sabine, Dewey, and Beveridge reading.

*  *  *  *  *  *  *  *  *

Reading Period
May 3—15, 1948

Economics 15b: Read one of the following:

Schumpeter: Capitalism, Socialism, and Democracy, Parts 1, 2, and 4.

Lionel Robbins: Nature and Significance of Economics.

 

Source: Harvard University Archives. Syllabi, course outlines and reading lists I Economics, 1895-2003. Box 4, Folder “Economics, 1947-1948 (1 of 2)”

________________________

1947-48
HARVARD UNIVERSITY
ECONOMICS 15b
[Final examination, May 1948]

Answer in all five questions, including 7a or 7b; and make one of your answers a one hour essay, so marked in your blue book.

  1. “Although the classical economists were free market liberals, the picture presented in their economic theory of the ‘natural’ working of the free market economy was not a picture of utopian perfection. They acknowledged a number of real flaws in the system. Then Marx, professing to build on but actually distorting the classical theory, exaggerated those flaws into evils held to be destined to destroy the system. And later the neo-classical economists, in opposition to Marx and in the effort to buttress laissez-faire more thoroughly, revised the old classical theory into one which appeared to support an unqualified optimism.”
    Explain and discuss each part of the statement. What flaws did old classical theory find in the system? What graver ones did Marx impute to it, and what were the chief similarities and differences between his and Ricardo’s doctrines in this connection? What novel concepts and doctrines in neo-classical theory contributed to its purer optimism; and how did they do so, and how legitimately?
  2. “The trouble with the free enterprise or free market economic system is that its long-run effects on a society’s culture and internally prevailing human attitudes, eventually destroy the kind of milieu which alone can enable this economic system to serve the general welfare, and survive. Where and as long as there is a real community, held together by a real moral consensus holding the competition of private interests within the bounds of mutual fair play, the free market system can develop and function well. But in time the growth of competitive, acquisitive ambitions and skills, in the mass of individuals and private groups, breaks through and dissolves the moral consensus and the bonds uniting the community. Competition then becomes warfare and anarchy, and coercive public controls must be developed to take the place, if possible, of the agreement in self-control by all severally, which has broken down.”
    What truth if any do you think is contained in this argument? What might be cited as some times of historical and contemporary evidence at least appearing to support it, and help convincingly in your judgment can it be thus supported? How might an economic theorist still thoroughly devoted to free-market liberalism, reply to the argument, and how if at all would you criticize his (best) reply to it?
  3. “The theory of monopolistic competition proves that, instead of harmonizing all private interests with the public interests, most actual business competition has characteristics which make the maximizing of private gains decidedly injurious to the economic welfare of society.”
    Explain and discuss. What characteristics of “most actual business competition” are referred to? Explain the proof of their socially undesirable consequences, and discuss any criticisms or limitations of this proof that you think may be valid. Do you think “decidedly injurious” is an overstatement? Why or why not?
  4. “Classical economics denied that there ever could be any deficiency of total demand for a full-employment output of the economy. Marx saw inevitable, chronic deficiency of total demand as one of the ‘internal contradictions’ bound eventually to destroy private capitalism. Keynes agreed with Marx about the deficiency, but, having a different theory of its causes, thinks it can be remedied by a simple type of governmental action within the capitalist framework.”
    Explain and discuss. How did the classical view support its denial of the possibility of deficient demand? Why is demand deficient according to Marx? Wherein does Keynes agree, and disagree with Marx? On what assumptions may the Keynesian remedy be held come consistent with retention of private capitalism; on what other assumptions, inconsistent with that?
  5. Describe and discuss all the main, admitted, and (in your opinion) likely ultimate, curtailment of individual freedoms in the Beveridge program for assuring “full employment in a free society.” Would you fear an eventual loss of virtually all freedom – “totalitarian” outcome – if the whole program were adopted in this country? Why or why not?
  6. Discuss the common and the divergent elements of the old classical liberalism, the liberalism of the Roosevelt New Deal, and the outlook of the average present day American exponent of “free enterprise.” As between our “New Dealers” and conservative “free enterprisers,” which group more nearly represents the main essentials of the older liberalism, in your opinion? Explain and defend your opinion on the last point carefully.
  7. (a) If you read Schumpeter in the reading period, explain and discuss his theory of the ways in which capitalism is preparing its own demise and the way for socialism.
    (b) If you read Robbins, state in your own words, and discuss critically, his definition of what economic science deals with and accomplishes.

 

Source: Harvard University Archives. Harvard University. Final Examinations, 1853-2001, Box 15, Papers Printed For Final Examinations: History, History of Religions,…,Economics,…Military Science, Naval Science. May 1948.

Image source: O. H. Taylor in the Harvard Class Album, 1942.

Categories
Exam Questions Harvard

Harvard. General Examination in Macroeconomic Theory. Spring, 1991

 

We turn our attention now to relatively recent Macroeconomic Theory. The immediately preceding post provides a transcription of the Spring 1991 General Examination in Microeconomic Theory at Harvard.

This post represents the second artifact from the Abigail Wozniak collection of Harvard graduate economics general examinations from Spring 1991 through Spring 1999. Future installments will be posted, though not on a regular schedule. 

 From the different formatting and fonts seen in the original copies, we can conclude that Part I (questions 1-3), Part II (questions 4-6), Part III (questions 7-9) were each written by different sets of examiner(s). 

___________________________

HARVARD UNIVERSITY
DEPARTMENT OF ECONOMICS
ECONOMICS 2010d: FINAL EXAMINATION and
GENERAL EXAMINATION IN MACROECONOMIC THEORY
SPRING, 1991

Instructions for all Economics Department graduate students:

The examination will last four hours.

Answer all three parts of the examination (Parts I, II and III).
Within each part, answer any two of the three questions given (so that, in all, you will answer six questions).

Use a separate bluebook for each question. Clearly indicate the question number and your identification number on the front of each bluebook.

Do not indicate your name on any bluebook you submit.

 

Instructions for all other students:

The examination will last three hours.

Answer Parts II and III only. Within each part, answer any two of the three questions given (so that, in all, you will answer four questions).

Use a separate bluebook for each question. Clearly indicate the question number and your name on the front of each bluebook.

 

PART I

Question 1

“Old Keynesian” models were often criticized by their detractors for their apparent reliance on counter-cyclical real wages to generate fluctuations in output. Write a well crafted essay giving several examples of how more modern models (both Keynesian and non-Keynesian) have dealt with this issue. Explain the mechanism by which each model yields output fluctuations without counter-cyclical real wage fluctuations.

 

Question 2

Suppose that the simplest Lucas model describes the economy:

(1) {{y}_{t}}={{m}_{t}}-{{p}_{t}}+{{\nu }_{t}} , quantity theory in logs

(2) {{y}_{t}}=\alpha \left( {{p}_{t}}-{}_{t-1}{{p}_{t}} \right)+{{\varepsilon }_{t}} , Lucas supply function.

where t-1pt  represents the mathematical expectation as of period t-1 of the price in period t, and {{\nu }_{t}} and {{\varepsilon }_{t}} are i.i.d. disturbances.

Suppose, however, that private agents, in their ignorance, believe that the economy is described by (1) and:

(3) {{y}_{t}}=\beta \left( {{p}_{t}}-{}_{t-1}{{p}_{t}} \right)+{{\varepsilon }_{t}} , bogus supply function

where \beta \ne \alpha .

(a) Will this ignorance lead to any real effects of anticipated money under any of the following monetary policies? “Where relevant, assume the central bank knows that (2) is true but that people believe (3).)

(4.1)  {{m}_{t}}=\bar{m}+{{u}_{t}} , constant money supply

(4.2) {{m}_{t}}=\rho \left( {{m}_{t-1}} \right)+{{u}_{t}} , gradual adjustment

(4.3) {{m}_{t}}=-c\left( {{y}_{t-1}} \right)+{{u}_{t}} , lagged feedback rule

Here ut  is a random error, and 0<\rho <1.

(b) Now suppose agents make a different mistake. They think the supply function is

(5) {{y}_{t}}=\alpha \left( {{p}_{t}}-{}_{t-2}{{p}_{t}} \right)+{{\varepsilon }_{t}}

That is, they know the parameter, but get the lag structure wrong. Answer the same question again.

(c) Give a brief intuitive explanation of why you obtain different answers in parts (a) and (b).

 

Question 3

Consider the following simple growth model:

The economy is comprised of a single representative agent, who divides his labor between two activities. A fraction {{\theta }_{t}}  of labor is spent producing goods for consumption at time t, while a fraction 1-{{\theta }_{t}}  of labor is spent producing capital goods at time t.

Suppose that the production function for consumer goods is.

{{c}_{t}}={{\theta }_{t}}k_{t}^{\alpha },

where kt denotes the capital stock as of time t.

The evolution of the capital stock is given by,

{{k}_{t+1}}=\left( 1-\delta \right){{k}_{t}}+\left( 1-{{\theta }_{t}} \right)k_{t}^{\alpha }

where \delta  is the constant rate of depreciation, and 0<\alpha <1.

(a) If \theta   is constant for all t, what happens to kt as t\to \infty ? What happens to ct in the long-run equilibrium?

(b) Suppose that consumer preferences are given by,

\sum\limits_{t=0}^{\infty }{{{\beta }^{t}}}\ln {{c}_{t}},

Where 0<\beta <1 is the discount factor. What is the path for \left\{ {{\theta }_{t}} \right\} which maximizes utility?

Before calculating this algebraically, explain the basic trade-offs involved in selecting and optimal \theta . What must happen to {{\lim }_{t\to \infty }}{{k}_{t}}  under the optimal policy? Now using the first order conditions, derive an expression for the optimal time path of the ratio {{{\theta }_{t}}}/{{{\theta }_{t-1}}}\; . What happens to this ratio as t\to \infty .

(c) How does an increase in the depreciation rate \delta  or an increase in the discount factor \beta affect the long-run equilibrium fraction of labor engaged in consumer goods production. Interpret your answers.

 

PART II

Answer any two of the following three questions. Be sure to use a separate bluebook for each answer.

  1. Suppose that a nation’s government seeks to influence its level of aggregate demand so as to keep it as close as possible to the “full employment” level of output, which is determined independently of government actions. Suppose also that the government has two ways of affecting aggregate demand. Government spending closely and reliably influences aggregate demand; money growth also influences aggregate demand, but in a highly unpredictable manner. At the same time, there is a specific level of government spending that is deemed appropriate for reasons having nothing to do with its effect on aggregate demand; by contrast, the rate of money growth is of no consequence except insofar as it causes aggregate demand to be above or below “full employment” output. How can the government take account of these considerations in its conduct of fiscal and monetary policy?

 

  1. What aspects of economic behavior determine whether monetary policy should tighten, ease, or remain unchanged when the economy experiences an adverse shock affecting its aggregate ability to supply goods and services on the basis of given labor and capital inputs? Be specific about the policy objective that your answer assumes.

 

  1. Under what circumstances will a tax-and-transfer system intended to buffer the economy against shocks (of whatever origin) be unable to affect the distribution describing real economic outcomes? Show clearly that the set of assumptions you posit is sufficient for this “ineffectiveness” result. What are the major correspondences and contrasts between this set of assumptions and the conditions under which actual tax-and-transfer systems typically function in most industrialized economies? What conclusions do you draw from any contrasts?

 

Part III

Question 7

Consider the following model of a small open economy under flexible exchange rates:

I = I0 – r,
S = r,
X = R,
M = –R,
F = –\alpha  r, \alpha ≥ 0
[S– (G– T)] – I = X – M,
F = X – M,

Where I = domestic investment, S = domestic private saving, X = exports, M = imports, F = capital outflow, G = government spending, T = tax revenues, r = domestic real interest rate, and R = real exchange rate. I0 is a shift variable representing investment demand shocks, and \alpha  indexes the degree of international capital mobility (when \alpha =0 , capital is completely immobile; when \alpha =\infty , capital is perfectly mobile). In order to eliminate problems related to the negativity of some variables, think of all magnitudes as deviations from some unspecified values. The world interest rate is equal to zero. Domestic and foreign assets are perfect substitutes.

 

  1. Suppose that fiscal policy is exogenous, in the sense that

G – T = G0 – T0,   G0, T0 given.

What are the equilibrium effects of an investment shock (a change in I0) on national saving and investment? Is a positive investment-national saving relation an indicator of a lack of perfect capital mobility? Explain.

  1. Suppose now that fiscal policy is endogenous, in the sense that

G – T = [G0 + \beta(S – I)] – T0,   G0, T0 given.

where 0 < \beta  ≤ 1. Answer the same questions as in 1. Explain.

 

  1. Can the presence or lack of a crowding out effect of fiscal policy (resulting from changes in G0) be used to empirically discriminate between the exogeneous and endogenous policy hypotheses? Why or why not?

 

  1. Comment on the potential theoretical and empirical implications of this exercise.

 

Question 8

The “twin deficits” hypothesis asserts that U.S. Federal budget deficits are responsible for U.S. trade deficits.

  1. Present two models, one which supports and one which invalidates, this hypothesis.
  2. How could a proponent of the model which does not support the twin deficit hypothesis account for the recent coincidence of budget and trade deficits?
  3. How would you test empirically each of your proposed models?

 

Question 9

What are the effects on consumption and capital accumulation of i) a proportional labor income tax, and ii) a proportional capital income tax in:

  1. A life-cycle (overlapping generations) model;
  2. An economy with infinitely-lived consumers.

 

Source: Department of Economics, Harvard University. Past General Exams, Spring 1991-Spring 1999, pp. 89-94. Private copy of Abigail Waggoner Wozniak.

Image Source: View of Widener Library from Harvard Campus, Cambridge, Mass. from Boston Public Library, Tichnor Brothers Collection of Massachusetts Postcards.

Categories
Exam Questions Harvard

Harvard. General Examination in Microeconomic Theory. Spring, 1991

 

 

The following general examination in microeconomic theory (Spring 1991) comes from a collection of nine years’ worth of general exams at Harvard from the last decade of the 20th century shared by Abigail Waggoner Wozniak (Harvard economics Ph.D., 2005). Abigail Wozniak was an associate professor of economics at Notre Dame before she was appointed senior research economist and the first director of the Federal Reserve Bank of Minneapolis’ Opportunity & Inclusive Growth Institute. Economics in the Rear-view Mirror is grateful for her generosity in having a copy sent here for eventual transcription. 

The “Wozniak collection” is over 90 pages long, so it will take some time for all the exams to appear. But for now I can at least promise that the Spring 1991 macroeconomics examination will be posted soon.

______________________

HARVARD UNIVERSITY
DEPARTMENT OF ECONOMICS
GENERAL EXAMINATION IN MICROECONOMIC THEORY
SPRING, 1991

Instructions:

For those taking the generals in microeconomic theory:

  1. You have FOUR hours.
  2. Answer a total of five questions subject to the following constraints:
    at least two from Part A;
    at least one from Part B;
    exactly one from Part C.

For those taking the final exam in Economics 2010B, but not the generals:

  1. You have three hours and ten minutes
  2. Answer a total of four questions subject to the following constraints:
    at least two from Part A;
    do not answer any questions from Part B;
    at least one from Part C.

Please use a separate blue book for each question, and please put your name (or number) on each book.

Unless otherwise specified, the parts within each question will be equally weighted.

 

PART A (questions 1, 2,3)

  1. Consider an economy composed of a large number of consumers who differ in their tastes and endowment. The preferences of each individual are described by u={{x}^{\alpha }}{{y}^{\beta }}{{z}^{\left( 1-\alpha -\beta \right)}}, where \alpha ,\beta >0,\,\,\,\,\,\alpha +\beta <1 and endowments are \omega =\left( {{\omega }_{x}},{{\omega }_{y}},{{\omega }_{z}} \right)
    1. Write the excess demand function for good x and y as a function of the prices of the goods p= (px, py, pz), using a knowledge of the statistics of the distribution F.
    2. Find an expression for the equilibrium price system.
    3. Show that it is unique.
    4. Suppose that the price system p is out of equilibrium at time t = 0 and that for each commodity price adjusts proportionately to excess demand. The constant of proportionality dk>0 for k= x, y, z is known to be positive but is not known to you. Can you nevertheless be sure that the price system will converge to the equilibrium found in b)? Explain
  2. Consider a firm with production function f(x) which is uncertain about the price of its product p. This uncertainty is summarized in the distribution function G(p). The firm wants to maximize its expected profits. The workers of this firm, represented by their union, want to make a contract with the firm that will guarantee them a certain level of expected utility. The union’s von Neumann-Morgenstern utility function is u(c,x), where c is the total payment received by the union and x is the quantity of labor provided by the union to the firm.
    1. Show that a contract in which c and x are specified in advance of the firm’s learning p is worse than one in which c and x can be chosen after p.
    2. Assume that the realization of p from the distribution G is observable to both the firm and the union and that contracts c(p), x(p) specifying the payment and employment as a function of p are possible. Describe an optimal contract mathematically as it depends on f, u and G.
    3. Now suppose that only the firm can observe p and that it must propose a contract c(x) which gives the compensation level as a function of labor demanded, and that the firm retains the right to choose x (and hence c) after the value of p is known. Write the problem of finding an optimal contract. What are the constraints?
    4. Now suppose that there are only two possible prices p, call them pH,pL. Moreover, assume that x is a normal good in the union’s utility function. Show that the constraints found in part c are binding. Relative to an efficient situation, compare the value of the marginal product of labor to the marginal rate of substitution between x and c in the union’s utility function.
  3. Consider a region consisting of three towns in which a jail must be built. The towns are configured as shown below:

1

2

3
    1. The towns do not want the jail located in their borders. Moreover they do not want it in the town adjacent to themselves. Assume that utilities are quasi-linear, so that we can speak of the willingness to pay to avoid having the jail in or near a given town in units of money, which is transferable among the towns. Each town has a willingness to pay for avoiding having the jail in its borders of 10. Their willingness to pay for having it in an adjacent town are:
Town Willingness to pay to avoid jail in a neighbor
1 5
2 3
3 0

Where should the jail be located on efficiency grounds?  (.15)

    1. Assume that the towns could freely bargain about the location of the jail, and that they can make deals involving monetary compensation among themselves. Describe the set of such arrangements that are robust against defection or recontracting. (.60)
    2. Now assume that each town is populated by an identical number of citizens with identical utility functions such that their individual willingnesses to pay sum up to the town willingness to pay as given in part a. Could some type of competitive market be arranged to produce an efficient outcome? How would you organize it? (.25)

 

PART B (questions 4 and 5)

  1. There are two firms, an incumbent and a potential entrant. To produce at all, a firm must install at least ko units of capacity. The cost of capacity is q (>0) per unit. A firm that installs k units of capacity (k ≧ko) can produce up to k units of output. The marginal cost of output is c. Inverse demand is given by p = a – bx, where x is total output (the sum of the two firms’ outputs). The incumbent moves in period 1 and selects its capacity level kI. The entrant then moves in period 2 and either chooses not to enter or else selects a capacity kE. Finally, the two firms select output levels simultaneously in period 3. Subgame-perfect equilibrium is the solution concept.
    1. What level of capacity must the incumbent install in order to deter entry? (Note: you need just set up the equation; it is not necessary to solve it explicitly). Will the incumbent ever choose to install capacity that it does not use in equilibrium?
    2. If the incumbent chooses to accommodate entry, how much capacity will it install? Again, just set up the maximization).
    3. Under what conditions on the parameter values will the incumbent act to deter entry rather than accommodate it?
    4. Now suppose that demand is random and that the uncertainty is not resolved until the beginning of period 3.
      Specifically, suppose that inverse demand is a-bx+\varepsilon  or  a-bx-\varepsilon with equal likelihood where \varepsilon is “small”. Assume that firms are risk neutral. Does the uncertainty increase or decrease the capacity needed to deter entry? (It should not be necessary to perform any computations to answer this question).
  2. Suppose we are in a three commodity market. Good 3 is a numeraire and the demand functions for the other two goods are:

x1(p,w)= a1+ b1p1+ c1p2+ d1p1p2
x2(p,w)= a2+ b2p1+ c2p2+ d2p1p2

    1. Note that the demand for goods x1, x2 does not depend on wealth. Write down the most general class of utility functions whose demand has this property.
    2. Argue that if the above demand functions are generated from utility maximization then the values of the parameters cannot be arbitrary. Write down as exhaustive a list as you can of the restrictions implied by utility maximization. Justify your answer.
    3. Suppose that the conditions identified in (ii) hold. The initial price situation is
      p= (p1, p2) and we consider a change to p´= (p´1, p´2). Define the concept of consumer surplus generated in going from p to p´.
    4. Let the value of the parameters be
      a1= a2= ½ , b1= c2= -1, c1= b2= ½, d1= d2= 0. Suppose the initial price situation is p= (1,1). Compute the consumer surplus for a move to p´ for each of the following three cases: (1) p´= (2,1), (2) p´= (1,2), (3) p´= (2,2). Denote by CS1, CS2, CS3 the respective answers. Under which condition will you have CS3= CS1+ CS2. Discuss.

 

PART C  (questions 6 and 7)

  1. In both neo-Marxian and neo-Keynesian theories there is, to paraphrase Schumpeter, no growth without profit and no profit without growth. But the interaction between profit and growth is different in the two theories. What are the most important differences?
  2. Consider the problem of predicting the shots made by an expert billiard player. It seems not at all unreasonable that excellent predictions would be yielded by the hypothesis that the billiard player made his shots as if he knew the complicated mathematical formulas that would give the optimum directions of travel, could estimate accurately by eye the angles, etc., describing the location of the balls, could make lightning calculations from the formulas, and could then make the balls travel in the direction indicated by the formulas.
    It is only a short step from these examples to the economic hypothesis that under a wide range of circumstances individual firms behave as if they were seeking rationally to maximize their expect returns (generally if misleading called “profits”) and had full knowledge of the data needed to succeed in this attempt; as if, that is, they knew the relevant cost and demand functions, calculated marginal costs and marginal revenue from all actions open to them, and pushed each line of action to the point at which the relevant marginal coast and marginal revenue were equal. (Milton Friedman, “The Methodology of Positive Economics,” in Essays in Positive Economics, pp. 21-22).

What are the most important criticisms of Friedman’s position? What would be lost for economics, normative as well as positive, if the maximization hypothesis were abandoned?

 

Source: Department of Economics, Harvard University. Past General Exams, Spring 1991-Spring 1999, pp. 84-88. Private copy of Abigail Waggoner Wozniak.

Image Source: Abigail Wozniak webpage at the University of Notre Dame.