Category: Exam Questions

Harvard. Earliest Multiple Choice Exam for Principles of Economics, 1948

Post author By Irwin Collier
Post date 2017-09-15

What makes the second semester final examination for Principles of Economics at Harvard in 1947-48 particularly interesting is that we probably discover there the introduction (at least to Harvard’s economics department) of that art form known as the multiple choice question. For the sake of completeness I have transcribed the first semester final examination as well. Coming up soon will be the course reading list for both semesters. I challenge readers to take the multiple choice exam and send me their answers. Perhaps someone out there will get a grant fat enough to allow administering the exams to a sample of current students!

_____________________

1947-48
HARVARD UNIVERSITY

ECONOMICS Aa

I.
(One hour and a half)

Answer BOTH questions

Suppose that Congress approves a European Recovery Plan which would entail a $4 billion expenditure by the United States Government during the coming year. This expenditure could be financed by the sale of government bonds (a) to the public; (b) to the member banks; (c) to the Federal Reserve Banks; or by (d) taxation. Indicate the effects of each one of these alternative methods on (1) member bank reserves (2) the money supply. Illustrate b use of member bank and Federal Reserve Bank statements (balance sheets).
Analyze and discuss “the process by which competition rations scarce goods, determines their values relative to each other…regulates the types and amounts of the goods and services produced, and encourages the use of the most efficient productive processes.” (Quoted from Chandler, p. 185)

II.
(One hour and a half)

Answer any THREE questions

Given the following incomplete data for 1939 (rounded out to the nearest billion):

Government outlays inclusive of transfer payments………17
Corporate saving (i.e., undistributed profits)…………….……1
Total taxes…………………………………………………………………15
Gross private investment…………………………………………….10

which of the additional items listed below would be necessary in order to deduce separately, 1. Gross National Product, 2. Net National Product, 3. Personal savings.
List of additional items:

a. Total wages,
b. Total money supply at beginning of year,
c. Total money supply at end of year,
d. Net increase in inventories,
e. Consumption expenditures,
f. Depreciation,
g. Income velocity of money,
h. Transfer payments by government,
i. Net change in member bank reserves.

How does the economist define profit? Why is this definition likey to differ from the concept of profit of the business man? What is the purpose of the eonomist’s definition?
Analyze the effect on the price charged by a monopolist for his product of THREE of the following:
1. A rise in the cost of labor,
2. A percentage tax on his profits,
3. A tax on the value of his plant and equipment,
4. The appearance on the market of a high priced rival substitute for his product.
Discuss the advantages and disadvantages of attempts to use anti-trust laws to restore competitive conditions in large scale industries.

Final. January, 1948.

Source: Harvard University Faculty of Arts and Sciences. Papers Printed for Final Examinations: History, History of Religions,…,Economics,…Military Science, Naval Science. January, 1948. Harvard University Archives, Harvard Final Examinations, 1853-2001. Box 15 of 284.

_____________________

HARVARD UNIVERSITY
THIS EXAMINATION PAPER MUST BE RETURNED TO THE PROCTOR

ECONOMICS Ab
May 17, 1948

The total time allowed for the three objective parts of the Examination is eighty-five (85) minutes. At the end of that time, these three objective parts of the examination will be collected.
Read carefully the instructions for marking the answer sheets.
Do not write on this paper. Use the scratch paper provided.

PART I

Indicate on the separate sheet the one best answer to each of the following questions. For each correctly marked answer, credit is given. For each incorrectly marked answer, credit is taken away. For each question no answered, credit is neither given nor taken away.
Allow approximately twenty (20) minutes for this part of the exam.

A vineyard produces only one output, burgundy wine, with only two inputs, unskilled agricultural labor and ten acres of land planted in grapes. The firm hires labor on a day-to-day basis, and can freely vary the quantity hired; the market for labor is purely competitive. The firm rents the land from its real owner, and has a two-year lease obligating it to pay a fixed monthly rental; moreover, it cannot increase or decrease the quantity of land which it can rent in less than two years. The price of burgundy wine is fixed by a trade association, and does not change during the entire period considered in this problem. The firm is in complete equilibrium, with optimum adjustment of inputs (land and labor) and output (burgundy wine) for maximum profit.
Now, the wage which must be paid for labor falls. There are no changes in the economy other than this fall in wages and its effects. In the firm’s new short-run equilibrium, compared to the original situation:

1. 1. The schedule of the marginal revenue productivity of labor to the firm
    1. is raised.
    2. is lowered.
    3. is not shifted.
    4. Its behavior is indeterminate with the information given.
  2. The schedule of the marginal cost of labor to the firm
    1. is raised.
    2. is lowered.
    3. is not shifted.
    4. Its behavior is indeterminate with the information given.
  3. The quantity of labor hired by the firm
    1. is increased.
    2. is decreased.
    3. is not changed.
    4. Its behavior is indeterminate with the information given.
  4. The marginal revenue productivity of labor for the quantity now hired by the firm, compared to the marginal revenue productivity for the quantity hired in the original situation
    1. is increased.
    2. is decreased.
    3. is not changed.
    4. Its behavior is indeterminate with the information given.
  5. The total payment made to labor by the firm
    1. is increased.
    2. is decreased.
    3. is not changed.
    4. Its behavior is indeterminate with the information given.
  6. The output of burgundy wine produced by the firm
    1. is increased.
    2. is decreased.
    3. is not changed.
    4. Its behavior is indeterminate with the information given.
  7. The profit of the firm
    1. is increased.
    2. is decreased.
    3. is not changed.
    4. Its behavior is indeterminate with the information given.

After many years pass, in the firm’s new long-run equilibrium, compared to the original situation:

1. 1. The quantity of land rented by the firm for any particular output of burgundy wine produced
    1. is increased.
    2. is decreased.
    3. is not changed.
    4. Its behavior is indeterminate with the information given.
  2. The quantity of labor hired by the firm for any particular output of burgundy wine produced
    1. is increased.
    2. is decreased.
    3. is not changed.
    4. Its behavior is indeterminate with the information given.
  3. The schedule of the marginal revenue productivity of labor to the firm
    1. is raised.
    2. is lowered.
    3. is not shifted.
    4. Its behavior is indeterminate with the information given.
  4. The output of burgundy wine produced by the firm
    1. is increased.
    2. is decreased.
    3. is not changed.
    4. Its behavior is indeterminate with the information given.
  5. The quantity of land rented by the firm
    1. is increased.
    2. is decreased.
    3. is not changed.
    4. Its behavior is indeterminate with the information given.
  6. The quantity of labor hired by the firm
    1. is increased.
    2. is decreased.
    3. is not changed.
    4. Its behavior is indeterminate with the information given.
  7. The rental per acre on the land rented by the firm
    1. is increased.
    2. is decreased.
    3. is not changed.
    4. Its behavior is indeterminate with the information given.
  8. The total rent payment to the owner of the land by the firm
    1. is increased.
    2. is decreased.
    3. is not changed.
    4. Its behavior is indeterminate with the information given.

PART II

Indicate on the separate answer sheet the one best answer to each of the following questions. For each correctly marked answer, credit is given. For each incorrectly marked answer, credit is taken away. For each question not answered, credit is neither given nor taken away.
Allow approximately forty-five (45) minutes for this part of the exam.

1. 1. A tax is proportional if
    1. the tax rate increases as the tax base increases.
    2. the tax rate decreases as the tax base increases.
    3. the tax rate remains the same as the tax base increases.
    4. the tax rate increases at a decreasing rate as the tax base increases.
  2. The Federal government can ease the inflationary pressure created in the U.S. through the European Recovery program by
    1. requiring that all the funds sent abroad be spent in the U.S.
    2. budgeting for a surplus.
    3. financing the program by borrowings from commercial banks.
    4. financing the program by borrowings from the federal reserve banks.
  3. The International Monetary Fund reflects the desire of the member nations to
    1. restore the pre-1914 gold standard.
    2. construct a stable yet flexible exchange rate system.
    3. eliminate, or at least reduce, tariff barriers.
    4. provide funds for the reconstruction of war-devastated Europe.
  4. A larger supply of dollars can be made available to other countries by
    1. stopping U.S. gold purchases and thus ending the drain of gold from abroad.
    2. reducing U.S. purchase of foreign securities.
    3. reducing U.S. trade barriers, particularly tariffs.
    4. continuing subsidies to American agriculture.
  5. The main source of instability and disturbance in the international dealings of the U.S. during the inter-war years was
    1. the surplus in the supply of dollars made available to other countries throughout the period.
    2. caused by deficient foreign demand for U.S. products.
    3. the extraordinary amplitude of fluctuations in the U.S. domestic economic life with concomitant variations in our purchases of foreign goods and services.
    4. stability of the movements of capital, into and out of the U.S.
  6. Which of the following would tend to increase the value of the dollar relative to the British pound under a system of free exchanges?
    1. Purchase by U.S. citizens of bonds issued by a British corporation.
    2. Payment of dividends by a British firm to U.S. stockholders.
    3. Flight of short term capital from U.S. to Great Britain.
    4. Greater increase in U.S. prices than in British prices.
  7. To find the marginal physical product of a factor we
    1. divide the total product by the number of additional units of the factor.
    2. see how much the total product has increased as a consequence of having used a small additional amount of the factor in question while holding the input of other factors fixed.
    3. examine the rate of change of average product.
    4. see how much the total product has increased as a consequence of having used a small additional amount of the factor in question along with the technologically appropriate additional amounts of the cooperating factors.
  8. A depression in the U.S. would tend to spread to foreign countries
    1. through lower incomes in the U.S., therefore lower U.S. imports, therefore lower incomes in countries exporting to the U.S.
    2. through lower incomes in the U.S., therefore greater importation of foreign goods, therefore lower real incomes abroad.
    3. through low prices in the U.S. causing greater demand in the U.S. for foreign commodities because of the Law of Demand.
    4. None of the above is an acceptable answer.
  9. Equity investments (stocks) rather than ordinary lending (bonds) is preferred as an implementation of a policy of foreign investments because
    1. the return is more certain.
    2. stocks are easier to sell in this country.
    3. the return is geared to the level of economic activity in the foreign country and, therefore, doesn’t represent such a burden in times of economic stress.
    4. the return is larger.
  10. A laborer’s reservation price is that which
    1. every other unit of labor receives.
    2. is so low that he prefers not to work.
    3. is the minimum amount he will take and still work.
    4. is so high that when he gets it he will refuse to work anymore.
  11. Once economic recovery has set in, inflationary price rises are likely to occur, even before full employment is reached, provided that
    1. the supply of some factor services is inelastic.
    2. the supply of some factor services is elastic.
    3. large scale increases in productivity take place.
    4. a sudden recession occurs in several important foreign countries.
  12. “All employees who, fifteen days after April 23, 1947, are members of the Union in good standing in accordance with its constitution and by-laws and all employees who become members after that date shall, as a condition of employment, remain Union members in good standing for the duration of this Agreement.”
    The above section of a trade agreement is commonly referred to as
    1. a union ship clause.
    2. a closed shop clause.
    3. bargaining for members only.
    4. None of these.
  13. A businessman produces a product using only one variable input, labor, and one fixed input, machinery. He pays his labor under a piece rate system and hires it in a competitive market. In the short run, if he increases his output
    1. his average variable cost will fall.
    2. his average variable cost will rise.
    3. his average variable cost will remain the same.
    4. his average variable cost will first fall and then rise.
  14. It is commonly believed that taxes upon economic profits are not shifted in the short run because
    1. redistribution of income and consequent changes in demand which occur are negligible.
    2. profit taxes are not business costs and hence do not alter the adjustment of output (therefore supply) which maximizes profits.
    3. neither the “marginal” firm nor individual ever pays taxes on profits.
    4. migration of capital occurs so speedily that the readjustment does not necessitate price changes.
  15. All but one of the following are disadvantages of a system of free or flexible exchange rates. That one is:
    1. encouragement to speculation in the exchanges.
    2. sacrifice of autonomy in a country’s internal economic policy.
    3. tendency toward retaliatory action by countries concerned.
    4. discouragement to traders and investors in the international field.
  16. The greater the divergence between a country’s opportunity cost ratio before trade and the international exchange ratio after trade,
    1. the less will be that country’s gain from international trade.
    2. the greater will be its gain.
    3. the less will be the extent of its specialization.
    4. the less vulnerable will it be to external deflationary influences.
  17. Under monopolistic condition an entrepreneur will hire more of a factor so long as
    1. its marginal physical product continues to be positive.
    2. the value of the marginal physical product is greater than the cost of the additional amount of the factor.
    3. he can sell the extra amount produced.
    4. None of the above is an acceptable answer.
  18. If an industry employs units of a factor with relatively high transfer earnings side by side with other units (of equal quality) whose transfer earnings are lower and if all units of the factor receive the same payment
    1. the former may be said to enjoy a rent-like return.
    2. the latter may be said to enjoy a rent-like return.
    3. the industry may be said to enjoy a rent-like return.
    4. the concept of rent doesn’t apply here.
  19. A necessary condition for “forced saving” is
    1. an expansion of credit resulting in the employment of men and resources previously unemployed.
    2. some people having incomes which don’t rise as rapidly as prices.
    3. banks being completely loaned up.
    4. None of the above is an acceptable answer.
  20. To determine whether the U.S. terms of trade improved between 1940 and 1947, which of the following would you need to know?
    1. The amount of gold imports during the period.
    2. The price (in the same currency) of U.S. imports and exports in 1940 and 1947.
    3. The rate of exchange between the dollar and some other important currencies (say the pound) in 1940 and 1947.
    4. The price level in the U.S. in 1940 relative to that in the rest of the world.
  21. A larger volume of government deficit expenditure will be required to bring about a given increase in employment
    1. the greater the elasticity of the supply of labor.
    2. the greater the velocity of money.
    3. the less the elasticity of supply of all factors of production.
    4. the greater the confidence of businessmen in the effectiveness of the government policy.
  22. A U.S. corporation may pay a net income tax when it has made an “economic loss” rather than “economic profits” because:
    1. the corporate income tax and excess profits tax together may exceed 100% of statutory net income.
    2. the corporate income tax rate structure is regressive.
    3. all interest payments but no dividends are deductible as costs before computing net income.
    4. the corporate income tax is a “benefit tax” on the privilege of doing business in the corporate form and hence takes no account of losses.
  23. A building and lot are valued at $20,000, and it is expected that the property will yield annual net income after taxes of $800 for an indefinite future period. Subsequently, a 2% rise in the tax rate on real property occurs which is expected to be permanent. The tax is capitalized if:
    1. the property is then sold for $10,000.
    2. the property is then sold for $12,000.
    3. the property is then sold for $30,000.
    4. the income from the property increases $400 annually because the tax is shifted.
  24. Assume that in 1937 the equilibrium rate of exchange between the U.S. and Great Britain was $5 to one pound, and that since that time the American price level has doubled and the British price level trebled. According to the theory of “purchasing power parity,” the new equilibrium rate of exchange will be:
    1. $3.33 to one pound.
    2. the same as the old rate.
    3. $7.50 to one pound.
    4. $6.25 to one pound.
  25. Great Britain imports raw materials in order to manufacture finished goods for exports. A devaluation of the pound sterling would
    1. tend to raise the price of British exports in foreign markets because the price of raw materials in Britain would rise.
    2. tend to lower the price of British exports in foreign markets because of the lower cost of pounds in terms of foreign currencies.
    3. have an indeterminate effect because both the above tendencies would exist.
    4. None of the above is an acceptable answer.
  26. Government deficit expenditures will fail to increase the money national income unless
    1. prices rise rapidly as a result of the policy.
    2. the difference between government expenditures and taxation is more than any reduction in private investment that may take place.
    3. wages of workers rise enough to prevent any profits which would be the direct result of the expenditures.
    4. None of the above is an acceptable answer.
  27. Suppose a firm uses 1,000 machines to produce 100,000 units of product per year. Suppose the machines have a useful life of five years, and that the machines are replaced in regular annual amounts. Then the normal demand for machines by this firm will be 200 per year.
    If the demand for the firm’s product rises 10% in some year, what will be the increase in its demand for machinery for this year?
    1. 20%
    2. 10%
    3. 50%
    4. 500%
  28. In general the elasticity of supply of agriculture products is less than that of manufactured products. In the early 1930’s the demand for virtually all goods declined. This would cause
    1. an improvement in the terms of trade of Great Britain who imports agriculture goods and exports manufactured goods.
    2. the opposite.
    3. the terms of trade of countries exporting agricultural products to improve.
    4. None of the above is an acceptable answer.
  29. Given the requirement that all individuals are to sacrifice equally in bearing the burden of taxation, then it follows that the maximum degree of progression which may be introduced into the income tax is limited only by
    1. the rate at which marginal utility decreases with increases in income.
    2. the size of income.
    3. the needs of government for revenue.
    4. the rate at which marginal utility increases with increases in income.
  30. Given: the same amount of labor (taken as representative of all the factors which in country A produces either 80 T or 160 L, in country B produces either 60 T or 50 L. One day’s labor in A produces one T or two L and receives a wage of $10.00. The wage of a day’s labor in B is $6.00. We assume that each country has a constant opportunity cost relationship between the two goods and, therefore, specializes completely in the production of one good. The terms of trade will be:
    1. 10 T for 8 L
    2. 3 T for 8 L
    3. 5 T for 8 L
    4. 3 T for 8 L

PART III

[Note: It appears that the typesetting of Part III that starts a new page in the original mistakenly numbered questions from 16 to 22]

The following items represent all the available information on the balance of payments for Ruritania in the year 194x. The Ruritanian monetary unit is the dollar.

Interest on foreign bonds owned by Ruritanians	$15
Expenditures of foreign tourists in Ruritania	$10
Exports (merchandise)	$440
Profits on Ruritania’s direct investments abroad	$55
Imports (merchandise)	$225
Expenditures of Ruritanian tourists abroad	$80
Net increase in short-term commercial loans made by Ruritanians	$50
Profits on foreigners’ direct investment in Ruritania	$10
Fees on insurance written for foreigners	$10
Interest on net increase in short-term commercial loans made by Ruritanians	$5
Interest on Ruritanian bonds owned by foreigners	$70
Net long-term loans made by Ruritanians	$85

1. 1. On the basis of these items, the total number of dollars supplied by Ruritania in 194x is
    1. $470
    2. $475
    3. $520
    4. $530
    5. $535
  2. On the basis of these items, the total number of dollars demanded on current account (trade and service items) in 194x is
    1. $515
    2. $520
    3. $530
    4. $535
    5. $585
  3. On the basis of these items, the total number of dollars supplied by Ruritania on capital account (capital items) in 194x is
    1. $0
    2. $85
    3. $115
    4. $135
    5. $155
  4. On the basis of these items, the total number of dollars demanded on capital account in 194x is
    1. $0
    2. $85
    3. $115
    4. $135
    5. $155
  5. If Ruritania were on the gold standard, her balance of payments in 194x would result in
    1. an increase in her gold reserves of $115.
    2. an increase in her gold reserves of $105.
    3. an increase in her gold reserves of $15.
    4. a decrease in her gold reserves of $5.
    5. a decrease in her gold reserves of $15.
  6. If Ruritania were on an inconvertible paper standard, her balance of payments in 194x would result in
    1. depreciation of the currency.
    2. inflation of the currency.
    3. devaluation of the currency.
    4. appreciation of the currency.
    5. deflation of the currency.
  7. From the balance of payments data, one can infer that Ruritania is a
    1. debtor country on long-term account.
    2. debtor country on short-term account.
    3. creditor country on long-term account.
    4. creditor country on short-term account.
    5. One cannot infer that Ruritania is in any of the above positions.

Final. May, 1948.

_____________________

1947-48
HARVARD UNIVERSITY

This part of the examination is to be written in the blue book AFTER you have finished the multiple choice test.

I
(Forty minutes)

1. 1. Outline and explain the monetary and fiscal policies appropriate to the several phases of the business cycle.

II
Answer any TWO questions
(Twenty-five minutes each)

1. 1. Describe and discuss the principal economic factors influencing the wage policy adopted by the trade unions in the hosiery industry in the period from 1920 to 1940.
  2. Explain the differences between rent, quasi-rent, and interest, and give specific illustrations of each.
  3. Discuss the possible defects of a progressive tax levied upon personal income. In your opinion do these defects arise from progressive personal income taxation as such, or from the particular form of the federal tax in the United States? Explain.

Final. May, 1948.

Source: Harvard University Faculty of Arts and Sciences. papers Printed for Final Examinations: History, History of Religions,…,Economics,…Military Science, Naval Science. May, 1948. Harvard University Archives, Harvard Final Examinations, 1853-2001. Box 15 of 284.

Northwestern. Monetary Policy Readings and Exam. Modigliani, 1961

Post author By Irwin Collier
Post date 2017-09-14

Between his professorships at Carnegie and MIT, Franco Modigliani briefly held a professorship at Northwestern. It appears that Northwestern could not be faulted in its pursuit and courtship of Modigliani, but one sees that Modigliani’s academic heart was left in Cambridge. He answered the call to MIT, undoubtedly leaving a broken hearted colleague or two in Evanston.

Below the reading list and final exam questions for Franco Modigliani’s course at Northwestern “Monetary Policy”.

____________________________

Modigliani remembers Northwestern

Carnegie granted me a sabbatical year in 1957-58, during which I was a visiting professor at Harvard, where I stood in for Leontief (who was on leave)…At the end of 1959 I was again invited to be a visiting professor, but this time at MIT. I intended to accept, but the administration at the Carnegie Institute was against it. In that period I felt rather annoyed by the university, for I had the impressiona that the administration did not intend to invest resources in the economics sector. To my dismay, they decided not to replace an excellent economist, Alexander Henderson, who had worked alongside me and died prematurely…
Serena and I therefore decided it was time to move on and accepted MIT’s offer and an invitation to occupy a permanent chair at Northwestern University, with the proviso that I be allowed to retain my post of visiting professor at MIT. The year 1960, then, was a crucial one, for I fell in love with MIT. It was a delight to have so many colleagues who were both at the top of the profession and pleasant. The administration aimed only to oil the wheels of the teacher’s liffe, and the students were all of the first quality…
At MIT everyone knew I had the commitment to go to Northwestern and, nobless oblige, no one tried to deter me. The University of Northwestern [sic] gave us a grand welcome. We found a large funished house awaiting us near the campus, and we were taken to avarious areas in order that we might choose where to buy our home. But we made too many comparisons with MIT and could not make the decision to put down roots. Everyone was too kind, too solicitous, and maybe we had the feeling as of being animals in a zoo, with everybody asking us about Italy. Well, our hearts were still back at MIT. Judge, then, how happy we were when, at Christmas, the dean of the Sloan School at MIT phone me and asked: “Franco, now you’ve had a taste of Northwestern…what about coming back to us?” We had no hesitation, and in June 1962 Serena returned to Massachusetts alone and bought our house in Belmont, where I joined her as soon as I had finished my classes in Evanston and where we spent 36 happy years.

Source: Franco Modigliani, Adventures of an Economist. New York: Texere, 2001, pp. 91-2.

____________________________

NORTHWESTERN UNIVERSITY
Department of Economics
Economics C-30
Mr. Modigliani

Fall Term 1961

C-30 MONETARY POLICY

Reading List I

Books suggested for general background and review

Chandler—The Economics of Money and Banking, 3^rd edition
Day and Bean—Money and Income
Sayers—Modern Banking

The Supply of Money, the Banking System, Financial Intermediaries and the Matrix of Claims

Meade, J. E.—“The Amount of Money and the Banking System”—Readings in Monetary Theory.
The Federal Reserve System—Purposes and Functions—Ch. I-VIII and XIII
H.C. Carr—“Why and How to read the Federal Reserve Statement” Journal of Finance, Dec. 1959
Roosa, R. V.—Federal Reserve Operations in the Money and Government Securities Markets
Chandler, L. V.—“Federal Reserve Policy and the Federal Debt”—Readings in Monetary Theory
Federal Reserve Bulletin—August 19959 “A quarterly presentation of Funds, Saving and Investment”

Reading List II

The Demand for Money

Fisher, I.—The Purchasing Power of Money, Chs. 1-6 and 8
Robertson, D.—Money, Chs. 4-6
Pigou, A.C.—“The Value of Money”, Readings in Monetary Theory
Hicks, J. R.—“A suggestion for simplifying the Theory of Money”, Readings in Monetary Theory
Tobin, J.—“The interest elasticity of Transaction Demand for Cash”, Review of Economics and Statistics (RE&S), August 1956
Keynes, J. M.—General Theory, Ch. 15
Friedman, M.—“The Restatement of the Quantity Theory of Money”, in Studies in the Quantity Theory of Money
Latané, H.A.—“Cash Balances and the Interest Rate”, RE&S, Nov. 1954, pp. 456-460
___________–“Income Velocity and Interest Rates”, RE&S, Nov. 1960, pp. 445-449
Stedry, A.C.—“A Note on Interest Rates and the Demand for Money”, RE&S, August 1959
Bronfenbrenner and Mayer—“Liquidity Functions in the American Money”, Econometrica, October 1960, Sects. I-IV
Friedman, M.—“The Demand for Money: Some Theoretical and Empirical Results”, JPE, August 1959

Reading List III

The Modus Operandi of Monetary Policy—Money and Liquidity—Monetary and Fiscal Tools.

Keynes, J.M.—A Treatise on Money—Ch. 13, 31, 37.
Keynes, J.M.—The General Theory of Employment, Interest and Money—Ch. 2, 6, 10, 11, 18, 19, 21.
Hicks, J.R.—“Mr. Keynes and the Classics”—Readings in the Theory of Income Distribution.
Modigliani, F.—“Liquidity Preference and the Theory of Interest and Money”—Readings in Monetary Theory (except sections 10 and 13)
Patinkin, D.—“Price Flexibility and Full Employment”—Reading in Monetary Theory
Tobin, J.—“A Dynamic Aggregative Model”, JPE, April, 1955 (espec. pp. 103-111)
Modigliani, F.—“Long Run Implications of Alternative Fiscal Policies and the Burden of the National Debt”—(Mimeographed)
Roosa, R.V.—“Interest Rates and the Central Bank”—Money, Trade and Economic Growth; Essays in Honor of John H. Williams
Kareken, J.H.—“Lender’s Preferences, Credit Rationing and the Effectiveness of Monetary Policy”, Review of Economics and Statistics, August 1957.
Friedman, M.—“A Monetary and Fiscal Framework for Economic Stability” Readings in Monetary Theory.
American Assembly—United States Monetary Policy Ch. 1, 2, 7.
Friedman, M.—A Program for Monetary Stability, (Fordham University Press)
Axilrod, S.H.—“Liquidity and Public Policy,” Federal Reserve Bulletin, October 1961.

Reading List IV

The Term Structure of Interest Rates, Monetary Policy and Debt Management

*Lerner, A.P.—“Essential Properties of Interest and Money”, QJE, May 1952
*Lutz, F.—“The Structure of Interest Rates”, Readings in the Theory of Income Distribution.
Hawtrey, H. G.—A Century of Bank Rates, Ch. VI
*Tobin, J.—“Liquidity Preference as Behavior Toward Risk”, Review of Economic Studies, Feb. 1958
*Meiselman, D.—“Expectations, Errors, and the Term Structure of Interest Rates” (mimeographed)
*Riefler, W.W.,–“Open Market Operations in Long Term Securities”, FRB, Nov. 1958
*Young, R.A. and Yager, C.A.—“The Economics of ‘Bills Preferably’” QJE, August, 1960.
Conrad, J.W.—An Introduction to the Theory of Interest. University of California Press, 1959 (especially part Three)

Final Examination
December 14, 1961
8:00-10:00

ANSWER ANY FOUR QUESTIONS

Under the present system commercial member banks are required to keep a reserve proportional to their demand deposit liability in the form of cash or deposits with the Federal Reserve Banks.
1. What is the function and role of these reserve requirements?
2. What would be the major implications of requiring a reserve proportional to their commercial loans rather than to their demand deposits. Explain whether and why you would favor or oppose such a change?
Some authors have maintained that the ability of certain financial intermediaries other than banks to create close money substitutes seriously impairs the effectiveness of monetary policy. Spell out the argument and assess its validity.
Evaluate the relative merits and shortcomings of monetary and fiscal policies in dealing with “cost push” inflation.
Explain the essence of the so called “availability doctrine” and its relevance for an understanding of the modus operandi of monetary policy.
State the main arguments for and against the “bills only” doctrine and give your own evaluation and recommendation.
The Federal Reserve Board and the Federal Deposit Insurance Corporation have recently raised the maximum rate payable on time deposits from 3 to 4%.
1. What are the purposes and the likely effects of this move?
2. Even though the new provision does not apply to Saving and Loan Institutions a spokesman for the United States Saving and Loan League was quoted by the Sun-Times of December 2 to the effect that the change “may very well mean some dividend rate increase by Savings and Loan institutions in different parts of the country” and “If Savings and Loans have to pay more for dividends they will have to increase rates on mortgages. This is a surprising development in view of the administration’s announced drive to hold mortgage rates down.” Assess this statement critically.

Source: Duke University, Rubenstein Library. Franco Modigliani Papers, Box T6, Folder “Teaching material, Economics, 1961”.

Image Source: Website Archivio Storico degli economisti.

Tags Modigliani

Chicago Exam Questions

Chicago. Graduate Price Theory Preliminary Examination, 1964

Post author By Irwin Collier
Post date 2017-09-10

Something inside of me continues to hope for this growing collection of historical economics examinations to attract comments that provide answers to the questions. But at least for now, I am at least adding to the digital historical record of economics education exam by exam and syllabus by syllabus.

_______________________

CORE EXAMINATION
Price Theory
Winter, 1964

Preliminary Examination for the Ph.D. and A. M. Degrees

WRITE THE FOLLOWING INFORMATION ON YOUR EXAMINATION PAPER:

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

Results of the examination will be sent to you by letter.

Answer all questions. Time: 3 hours

[45 points] Indicate whether each of the following statements is true or false and explain briefly why.

T F	1.	An “inferior” good is one for which the marginal utility is negative.
T F	2.	The short-run marginal cost curves cross the long-run marginal cost curve from below (proceeding from left to right) at the quantities corresponding to the points of tangency of their respective average curves.
T F	3.	For a homogeneous production function of degree one, and, for given relative factor prices but varying output, both of the following are true: a. The ratios of the quantities of the various inputs are constant at all levels of outputs. b. The average productivities for each factor are constant at all levels of output.
T F	4.	Suppose you have the following budget data for two periods for a consistent consumer (i.e., a consumer who, in those situations where the same two commodity bundles are within his budget and he chooses one of them, will never choose the other one): prices of all goods in only the first period p_i¹ for i = 1, 2, …, n) and quantities purchased of all goods (q_i¹ and q_i² for i=1, 2, …, n). Then it is true that implies that the consumer is “better off” in the first period than in the second.
T F	5.	Consider an individual’s demand functions for two goods, x_k and x_j. Then the cross elasticity of demand for x_k with respect to p_i^k is equal to the cross elasticity of demand for x_j with respect to p_k when only the substitution terms are considered.
T F	6.	“The more the merrier” is a denial of the law of diminishing marginal utility.
T F	7.	“The increment of product resulting from adding one more worker to a firm should not be attributed exclusively to labor because it results partly from the more intensive working of the other productive factors.”
T F	8.	A tax of 20 per cent on all wages and salaries will decrease the supply of labor by more than a tax of 20 per cent on overtime pay alone.
T F	9.	Carpenters would not receive a wage equal to the value of their marginal product if they were a “specific factor of production” in the industry using their services.
T F	10.	The demand function for labor on the part of a competitive industry can in some cases be more elastic in the neighborhood of a given point if the quantities of other factors are taken as given than if the prices of other factors are taken as given.

[Note: Question II neatly ripped off from this copy, presumably deleted from the examination]

[15 points] A substitute for a product is invented. What, if anything, can you say about the effect of this invention on (a) the position; (b) the elasticity of the demand curve for the initial product? (To fix ideas, one example is the effect of the invention of electric shavers on the demand for safety razors; another, and perhaps more widely quoted example, is the effect of the introduction of financial intermediaries on the demand for money.)
[15 points] We frequently hear it said that labor is cheap and capital dear in a country like the U.S. Such statements seem reasonable, yet it is not clear how one can compare the price of labor (rupees or dollars per hour) with the price of capital (percent per year). Can you suggest a way to interpret the statements so that they make sense?
[30 points] In the 1880’s there were a class of independent railroad ticket brokers called “scalpers,” who purchased tickets in quantity at reduced prices from the railroads and resold them to the public, typically at prices below the prices posted by the railroads and charged to people who bought tickets at the railroad windows.
In discussing the practice in its 1890 report, the Interstate Commerce Commission argues that (a) it raised the cost of transportation because it made it necessary, “to support the auxiliary force of scalpers,” and (b) also reflected “the avidity of nearly every railroad to do a greater amount of passenger business than any competitor.”
Is (a) correct? Is it consistent with (b)?
[30 points] President Johnson has recently sent to Congress a bill that would require certain industries to pay double the standard wage-rate for overtime. Assuming competitive conditions, what can you say about the effect on (a) prices of products (b) output (c) number of man hours, (d) number of persons employed in (1) the industries affected and (2) other industries?
[30 points] Currently, the number of taxicabs permitted to operate in the city of Chicago is limited by licensure, no new licenses are being issued, and existing licenses which can be transferred sell for substantial sums. In addition, the price which taxicabs charge is fixed by the city. (A) Suppose restrictions on licensure were lifted but prices continued to be fixed at present levels. What would be the effect on (a) number of cabs, (b) incomes of non-driving owners of cabs, (c) wages of non-owning (i.e., hired) cab drivers?
(B) Suppose the price restrictions were lifted, so cabs could charge whatever they wanted. What would you expect to happen to prices for taxicab rides, both with respect to level and structure?

Source: University of Chicago Archives. George Stigler Papers. Addenda, Box 33, folder “Exams and Prelim Questions”.

Image Source:University of Chicago Photographic Archive, apf4-01703 1923 photo of the University of Chicago band’s bass drum (over 8 feet in diameter). , Special Collections Research Center, University of Chicago Library.

Chicago Exam Questions Suggested Reading

Chicago. Jacob Viner’s Price and Distribution Theory Course, 1941

Post author By Irwin Collier
Post date 2017-09-06

Jacob Viner’s graduate course on price and distribution theory has become a legend in the history of economics. Milton Friedman (1932) [links to many of the course readings assigned by Viner found in the posting for 1932] attended Viner’s lectures as did Paul Samuelson (1935). During the Fall quarter of 1941, Norman M. Kaplan attended Viner’s price and distribution theory course. From Kaplan’s approximately 100 pages of handwritten class notes plus 150 pages of handwritten notes on the course readings, I am able to post today a transcription of his notes from the first week of the course along with a list of titles of readings that I have found referred to in his class notes and/or in his reading notes. In the folder with these notes one also find course examination questions together with Kaplan’s answers. I only include Viner’s examination questions today.

________________________

Course Description

Price and Distribution Theory.—A study of the general body of economic thought which centers about the theory of value and distribution and is regarded as “orthodox theory.” This course includes the critical examination of some modern systems of this character. Prerequisite: Economics 209 or equivalent and the Bachelor’s degree. Summer, 8:00, Knight; Autumn, 9:00, Viner.

Source: Announcements of the University of Chicago. Vol. XLI, No. 10. (April 25, 1941). The College and the Divisions for the Sessions of 1941-1942. p. 306.

________________________

First Week: Introduction
Kaplan’s notes to Viner’s lectures

Oct. 7

I. Changes in econ. theory in last 10 years.

Increasing tendency now to general as vs. partial equilibrium analysis. (More than one variable permitted to vary as vs. Marshall,: ceteris paribus relaxed). You surrender usually the breadth of the generalization in the interest of reality, of closer approximation to facts. Since Walras-Pareto school, technical skill of economists has increased so that little is lost in way of generalization. Few now use Walras-Pareto method; Schultz last used Lausanne method preceded by Henry Moore.
A more definite and thorough incorporation of monetary theory in general theory. In Marshall’s Principles, e.g., equilibrium is described with monetary theory & banking structure excluded. This stemmed from Classical Economists’ criticism of Mercantilists as exaggerating role of money; money was a “veil covering other things”. Since 1929, emphasis has been placed on monetary theory due to depression (depressions always yield concentration on monetary matters) and to special influence of Keynes.
Increasing attention to cyclical phenomena (now on wane, thinks Viner)—depression is normal & prosperity an aberration.
Greater attention paid to monopolisitic practices and to deviations from perfect competition.
Substitution of production theory for distribution theory. Distribution theory in Marshallian sense is disappearing from theory.

Viner will give little of these changes; this is a course in Marshallian econ., primarily.

II. Most of econ. propositions are quantitative in nature, mathematical

(Includes “greater than”, and “less than” concepts; though qualitative may also be math.).

Criteria: (1) Have you been logically consistent; (2) If you have been logically consistent, where have you gotten in deduction from premises. Another important issue is selection of premises; here is where economists frequently fall down.

Premises must be examined: (1) what variables are you recognizing; (2) how many & nature of variables; (3) nature of preconceptions—what do you assume with regard to econ. rationality, e.g. Part of reason for controversial nature of econ. is wide range of possible choices as to premises due to wide range of variables in any situation as vs. physical sciences where there are few variables & laboratory control can reduce the no. of these. On the other hand, variables in econ. are too few to apply probability theory as in actuarial science or celestial mechanics where you don’t have to worry about nature of variables, since great no. of variables none of which has any intelligible significance.

III. Two types of analysis:

(1) Reduction of variables in any situation & particular scrutiny of variables; (2) Probability theory. Criteria of probability theory: (1) Population is large; (2) Population is homogeneous; (3) All members are roughly coordinate in effect. Economist uses probability in his statistical analyses; he selects dominant variables & leaves the rest to probability theory on grounds that none of these variables exert a very important influence on result. Leaving the rest to probability is an euphemism for neglecting them.

IV. Marshallian approach is a static equilibrium approach.

Changes & disturbances through time have been dealt with not through process analysis [illegible parenthetical insert here: perhaps “(time implicit)”)] but through comparative statics—no analysis of how you get from one place to another through time but a comparison of two static equilibriums with slight changes. Marshallian economics is a balanced aquarium system, with individual inhabitants undergoing cycles of life & death but with the equilibrium undisturbed by individual dynamics.

Oct. 8

I. We ordinarily assume a stationary economy in some sense (something not changing through time) in orthodox theory.

Often you start out with “exchange economy”—no change in production; no consumption. All participants have commodities, swap; who has what & how much?
Another type of assumption.—fixed quantity of resources or factors of production
Another type of assumption.—fixed quantity of services
Another type of assumption.—fixed supply functions of resources (not inconsistent with stationary state)
Another type of assumption.—fixed supply functions of services (not inconsistent with stationary state)

II. [Meaning of stable equilibrium]

In assuming stable equilibrium, you may assume that all atoms are in equil. or that atoms may be in disequilibrium but over all equil. is possible because disequil. in one direction are offset by disequil. in other direction.[Note by Kaplan:

III. Theorists are tending to work from individuals to aggregate rather than vice versa.

IV. Neo-classical theory is criticized as being abstract.

But abstraction is necessary to generalizations & generalization is the only thought we know.
Such critics usually meant that it’s too abstract, if they mean anything.
1. Complete absence of concrete detail is practically inconceivable. There always must be some factual or allegedly factual material or you wouldn’t know it was econ.
2. Complete particularism (no generalization) can’t be found.
  1. Even an infant beginning to talk uses generalizations—“cat” as label
  2. Use of symbols is so tied with generalization it’s impossible to use words without generalization.

Walton H. Hamilton is a particularist; generalizations are dangerous because they lead to abstraction. His book on prices shows each industry has peculiarities of its own. Of course, but particularism is dangerous because it shows absence of thought; no inquiry into uniformities.

The degree of abstraction depends on the purpose of economic inquiry—eternal economic truths or problem solving.

V. 4 kinds of purposes in economic analysis.

Intellectual exercise
Cultural value—throwing light on history & nature of mankind
Tool sharpening—to teach skill in use & invention of tools of analysis
(Social) problem solving—most important for profession as a whole.

Degree of abstraction depends on purpose.

VI. Econ. is criticized for assuming the rationality of man

(Cf. Mitchell’s [word illegible: appears to be “Phillisipl”, probably a misspelling of “Felicific. See Wesley Clair Mitchell, “Bentham’s Felicific Calculus”. Political Science Quarterly (June, 1918), pp. 161-183.] Calculation of Bentham) Mitchell says we have now learned man is not dominated by rational behavior—thinking of Freud & Behaviorism.

But what is rational behavior? What proportion of time must a man spend so behaving (after rational is defined) to be dominated by such behavior? Sentence is meaningless. Habit may be rational in origin, habitual behavior does not mean irrational behavior.

does assume rationality in some sense.
To econ. rationality means:
1. Correct use of means to attain desired ends, given the state of kg. [knowledge] of the actor.
2. Substantial degree of reliable accurate kg. [knowledge]
3. Immediate ends of behavior econ. is looking at are primarily economic—i.e., directed towards wealth, leisure, productive activity.

Testing rationality would be very difficult probably impossible.

Classical economist believed that except for depraved & degraded persons the behavior of man was substantially close to the three criteria to constitute rationality. They were biased in favor of rationality because they were essentially democrats (politically) & equalitarians [sic]. They had a technological (professional) bias in favor of rationality because they were proficient in such an assumption, they had been taught that. (A professional bias, not a class bias, says Viner). That technological bias was for a priori deductive analysis because earlier classicals were deductive and it was easier & body of kg. [knowledge] was deductive. Deductive analysis is tied up with rationality because otherwise you would have to make observations to know how men would behave. Econ. even deductive econ., is not absolutely tied to rationality but only to some predictable pattern of human behavior (which may be irrational, but must be predictable if science is to be a priori.[)]

Oct. 9

I. Assumption of rationality.

No reason why econ. couldn’t take account of irrationality if it could find such patterns, but that would take systematic observation. Rationality is easier.
Economic man:
1. Is he selfish? Unit is the family; it’s an economic family not an economic man; Ricardo, e.g., took it for granted that wife would be taken care of & children raised. Ends which economist treats are not final ends, though they may be final as far as economist analyzes. Assumption is only that in market place, man is economic. Whatever altruistic motives man may have are not directed towards other party to contract. Altruism or hostility to other bargainer disturbs economic theory; participant is neutral towards other. This is extent of selfishness. Such an assumption—indifference of party A in contrast to welfare of party B—may be unrealistic in some markets: hostility in Irish landlord-tenant and Negroe [sic] sharecropper relation and benevolence in English landlord-tenant relation. English landlord may be acting rationally, though not an economic man.
2. Not synonymous with rationality.

II. [When the “means” themselves are “ends”]

You don’t get very far with definition of econ. as application of scarce resources to desired ends because one of the most difficult problems is to distinguish between means and ends. Adam Smith dealt with division of labor as allocation of scarce resources to desired ends but Ferguson criticized Smith for not seeing the values in the activities. What Smith thought were means may have been ends. Agriculture may be a means, but it may also be an end—agr. as a “way of life”.

III. What is rational attitude towards risk taking?

Value all risks which could be valued at actuarial values? But is abhorrence of risks & therefore undervaluing them or love of chance & therefore overvaluing any the less rational.[?]

IV. Even Classical did not always assume rationality:

Dealt with ignorance factor—patterns of behavior due to misinformation or lack of it
In connection with savings they said masses failed to make adequate provision for future, did not foresee needs of the future or hadn’t the will to so provide (former is ignorance; latter is irrationality)
Population theory based on irrationality—family decisions not made on grounds of economic welfare.

We will assume rationality in this course, but in economics generally we must be flexible and willing to drop the assumption if necessary.

End of introduction

[Oct. 9 notes continue with a preliminary discussion of the Marshallian demand curve]

________________________

Suggested/Required Course Readings
Compiled from Kaplan’s notes
Notes on these readings ( made by Kaplan

Demand & Supply: Cost of Production

*Marshall, Book V, Ch. 1, 2, 3, 4, 5, 12, Appendix H
*Viner, Cost Curves & Supply Curves
*Chamberlin, Theory of Monopolistic Competition, Ch. II & Appendix B, pp. 190-93.
Harrod, Theories of Imperfect Competition (get article)

On Cobweb Adjustment

*M. Ezekiel “The Cobweb Theorem” QJE, Feb. 1938
*N. W. Buchanan “On the Cobweb Theorem” JPE, Feb 1939

Empirical Analysis

(Optional) Joel Dean, “Statistical Investigation of Costs with Especial Reference to Marginal Costs”, Supplement to 1936, U. of C. Journal of Business.
*Stigler, “The Limitations of Statistical Demand Curves,” J. of Am. Stat. Assn. Sept 1939, pp. 469-81

Austrian Theory of Value

*Smart, Intro. to Theory of Value, pp. 64-83
*Wicksteed, Commonsense of P.E. Robbins edition Intro. Vol. I p. XX, Vol. II, pp. 784-88

Joint Demand & Joint Supply.

*Marshall, Bk. V, Ch. 6 & Math Appendix H

Monopoly Value.

*Marshall Bk. V., Ch. 14

Distribution Theory

*Distribution theory. Marshall, Bk. VI, Ch’s 1 & 2
J.B. Clark, Dist. of Wealth. Preface & chapters 1, 7, 8.

Some items mentioned as suggested readings

Cf. A. L. Meyers. Elements of Modern Economics (1941 ed.), Ch. V on Indifference Curves.
or *Boulding Economic Analysis, [Ch. 30 Advanced Theory of Consumption]

Cf. Hans Staehle. Elasticity of Demand & Social Welfare. QJE, Feb. 1940.

Betterman, Elasticity of Supply Am. Ec. Rev. 1934, pp. 417 ff. Better: R. F. Fowler “The diagrammatical representation of elasticity of supply” Economica, May 1938.

Cf. p. 24 of Viner article on conflict between English & Austrian schools.

Cf. Ch. 23 Boulding

Halevy, Westminister Review

Not recorded as assignments in lecture notes,
but reading notes were taken by Kaplan

*F. H. Knight. “Demand” in Encyclopedia of Soc. Science.

Marshall

*Book III, Ch. I, II, III, IV, V, VI, Note III in math appendix. Ch. III A, Ch. IV B., Note IV
*Book V, Ch 1 Note A, B
*Book V, Ch. 2. Note A, B
*Book V, Ch. 3. Note A, B, C
*Book V, Ch. IV
*Book V, Ch. 5, Note A, B, C, D, E, F
*Book V, Ch. 6, Note. A, B, C, D, E, F, G, H, I, J, K
*Book V, Ch. VI, mathematical note XIV appended to note D.

________________________

Course Exams

ECONOMICS 301
[Perhaps midterm: Kaplan answers only for 1-3]

Comment briefly on each of the following passages (explanation, justification, disproof, qualification, as may be appropriate).

“It is not the case that an increased demand for mutton must in the long run necessarily operate to lower the price of wool. An increased demand for mutton will stimulate sheep farming, but it will also stimulate the substitution of crossbred [mutton type] for merino [wool type] breeds; and the resultant of these two opposite tendencies is logically indeterminate.”
“When Consols are at 93½ , and business in in a tranquil state, it matters not how many buyers of these securities there are at 93, or sellers at 94. They are really off the market. Those only are operative who may be made to buy or sell by a rise or a fall of an eighth. The question is, whether the price shall remain at 93½, or rise to 93 5/8, or fall to 93 3/8. This is determined by a very few persons and by the sale or purchase of very small amounts.”
“The degree of monopoly control by a seller equals the degree by which price exceeds marginal revenue.”
“The degree of monopoly control by an employer as employer equals the degree by which the value of the marginal product of labor exceeds the marginal supply price of labor.”
“Where it is the case that people would not give as large a total sum for a larger quantity of an article than for a smaller, this would be expressed geometrically by saying that the demand curve would cut negatively a rectangular hyperbola.” [negatively means cut from above]
“The fact that supplying labor with better or more instruments results in an increase in output has sometimes led to the conclusion that capital is productive, a phrase which must be used with care. The strictly accurate statement is that labor applied in some ways is more productive than labor applied in other ways. Tools and machinery, buildings and materials, are themselves made by labor, and represent an intermediate stage in the application of labor. Capital as such is not an independent factor in production, and there is no separate productiveness of capital.”

ECONOMICS 301
Thursday [December 18, 1941]

Time: 1 hour.

a. If elasticity of demand is unity, and original rate of sales is 1,000 per month, what will happen to the rate of sales if price falls 50 per cent?
b. If elasticity of demand is two, and original rate of sales is 1,000 per month, what will happen to the rate of sales if price falls 25 per cent?
c. “Since elasticity of demand measures variations in quantity demanded divided by variations in price, the elasticity of the demand for anything will be seven times as large for seven similar demanders taken together as it is for one.” Comment.
Discuss the probable shapes for a particular plant of its short-run and its long-run average cost curves, and given these curves, explain the derivation of the corresponding marginal cost curves.
On what grounds can it be held that in any important industry, increase in output is in the static long-run likely to be subject to conditions of increasing cost? Give and discuss the arguments which have been presented in support of different views.

ECONOMICS 301
Friday [December 19, 1941]

Time: 1 hour.

Suppose that a single monopolist takes charge of an industry which has hitherto been in the hands of a large number of independent producers and which makes extensive use of a specialized type of labor. Give an account of the factors which will determine the effect of the change on (a) the industry’s output, and (b) the volume of employment of labor by the industry.
A power monopoly, operating within the range where there are net internal economies of large-scale production sells current for both industrial and domestic use. The distribution costs on the latter are 20 cents per unit higher than for the former. Given: (a) the industrial demand schedule for current; (b) the domestic demand schedule for current; (c) the average cost schedule for generating current plus distributing it to industrial users.
What rates should be charged to each type of customer to maximize the net income of the company?
a. What conditions are necessary if the demand curves for particular firms in an industry are to have negative inclinations, but without any net monopoly profits?
b. Are these conditions compatible with long-run equilibrium?

Source: The University of Chicago Archives. Norman M. Kaplan Papers, Box 4, Folder 1.

Image Source: Image Source: University of Chicago Photographic Archive, apf1-08490, Special Collections Research Center, University of Chicago Library.

Tags Kaplan, Viner

Courses Exam Questions Harvard

Harvard. Introductory Economics, Final Exams. Taussig, 1914-1915

Post author By Irwin Collier
Post date 2017-08-28

Frank W. Taussig played a central role in Harvard’s economics at two important stages. He was the lecturer for the entry-level Principles of Economics course for undergraduates and the core economic theory course for graduate students. In addition he covered the field of international economics.

The course announcement, enrollment figures, and the final examination questions for his principles course come from four different sources, three of which are available on-line. Over the past few weeks, I have posted corresponding material from the twenty economics courses offered at Harvard during the 1914-15 year for which the final examination questions had been printed and subsequently published.

The following year (1915) Edmund E. Day and R. S. Davis (who belonged to the team of instructors and assistants for this principles course) published their Questions on the Principles of Economics (New York, Macmillan) that was arranged by topics to follow Taussig’s own textbook Principles of Economics (Second, revised edition of 1915: Volume One; Volume Two).

______________________

Course Announcement

Economics A. (formerly 1). Principles of Economics. Tu., Th., Sat., at 11.
Professor Taussig and Asst. Professor Day and five assistants.

Course A is introductory to the other courses. It is intended to give a general survey of the subject for those who take but one course in Economics, and also to prepare for the further study of the subject in advanced courses. It is usually taken with most profit by undergraduates in the second year of their college career. It may not be taken by Freshmen without the consent of the instructor. History 1 or Government 1, or both of these courses, will usually be taken to advantage before Economics A. [p. 61]

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

The course will be conducted partly by lectures, partly by oral discussion in sections. A course of reading will be laid down, and weekly written exercises will test the work of students in following systematically and continuously the lectures and the prescribed reading. [p. 62]

Source: Division of History, Government, and Economics 1914-15. Official Register of Harvard University, Vol. XI, No. 1, Part 14 (May 19, 1914).

______________________

Course Enrollment

[Economics] A. Professor Taussig and Asst. Professor Day, assisted by Dr. J. S. Davis, and Messrs. P. G. Wright, Burbank, Vanderblue, W. C. Clark, and Monroe.—Principles of Economics.

Total 491: 1 Graduate, 30 Seniors, 137 Juniors, 260 Sophomores, 11 Freshmen, 52 Others.

Source: Report of the President of Harvard College, 1914-15, p. 59.

______________________

Mid-year Examination

ECONOMICS A

[Arrange your answers strictly in the order of the questions. Answer all the questions; be concise; plan your answers with care; and leave time for revision at the close.]

In what ways, if at all, is the development of the complex division of labor connected with (a) the monotony of labor; (b) the Industrial Revolution; (c) integration of industry; (d) the recurrence of industrial crises?
Explain: external economies; internal economies. Which set of economies is most significant for the explanation of (a) the localization of industry; (b) increasing returns; (c) the development of monopoly?
If possible distinguish between

(a) diminishing returns and diminishing utility;
(b) by-product and joint product;
(c) joint cost and joint demand;
(d) “corners” and monopolies;
(e) median and arithmetical mean.

Explain briefly the immediate and the ultimate effects (if any) which each of the following changes, taken separately, will tend to have on the price of cotton, cotton-seed oil, and cotton-mill machinery; (a) prohibition of organized speculation; (b) a change of fashion toward greater use of cotton fabrics; (c) doubling of the population of the country. (Assume for all three cases that there is no international trade, and that the quantity of money remains the same.)
In what direction and by what process, if at all, would the following tend to affect the value of money in the United States; (a) increased demand for gold ornaments; (b) increasingly lavish expenditures by spendthrifts; (c) a continued drain of specie to the East; (d) a larger output of silver in the United States; (e) abolition of all legally required banking reserves?
Under what conditions does inconvertible paper money circulate as readily as specie? Under what conditions, not as readily?
Under what conditions is the value of inconvertible paper money as great as that of specie? Under what conditions is its value less than that of specie?
State two indications of its having less value than specie. Which of the two is the more significant? Which is the more easily ascertained?
State points of similarity, points of difference, between the Federal Reserve system and the English banking system as regards (a) centralization of reserves; (b) centralization of note issue; (c) measures available for preventing panics.
Under what circumstances, if any, can a country have a permanent excess of imports? Under what circumstances, if any, a permanent outflow of specie? Does an excess of imports lead to an outflow of specie?
Wherein, if at all, does a country gain or lose in its foreign trade (a) if prices and money incomes are higher than in foreign countries; (b) if prices and money incomes are lower?

Mid-Year. 1915.

Source: Harvard University Archives. Examination Papers in Economics, 1882-1935. Prof. F. W. Taussig. (HUC 7882). Scrapbook, p. 106.

______________________

Final Examination

ECONOMICS A

Arrange your answers strictly in the order of the questions.
Answer all the questions.

Explain concisely: —

diminishing returns,
margin of cultivation,
equilibrium of supply and demand,
economic rent.

Construct a simple index number of prices for 1914, using 1908 as the base.

	1908	1914
Wheat, bbl.	$8.00	$12.00
Coal, ton	8.00	8.00
Iron, ton	18.00	9.00
Lumber, 1000 feet	20.00	15.00
Meat, lb.	.20	.30
Sugar, lb.	.10	.10

(1) Would the index-number point to a rise or a fall in the value of money? (2) Would a Board of Arbitration be justified in recommending a change in wages? If so, on what basis? If not, why not?

Under what circumstances, if under any, will the imposition of a import duty cause the price of the dutiable commodity to fall? Under what will it fail to affect the price? Under what will it cause the price to rise?
To what cause or causes should you ascribe: —

(a) the high level of general wages in the United States;
(b) the high wages of skilled workmen such as plumbers;
(c) the high wages of domestic servants in the United States;
(d) the high wages of trained nurses.

Why is saving no less advantageous for laborers than lavish expenditure? Why do laborers usually favor ” making work “?
“The standard of living affects wages not directly, but ” — how?
What evidence of varying standards of living appears in the statistics of births and deaths for different countries? for different social classes?
“The special question presented in this regard by the trust movement seems to be whether large-scale management adds something to the gains from large-scale production in the narrower sense. Here, too, it would appear at first sight that the matter may be allowed to settle itself. Let them fight it out and let that form of organization survive which does the work most cheaply.”
Explain (a) what is meant by large-scale management and large-scale production; (b) what grounds there are for saying that they should be allowed to fight it out, what grounds for saying that they should not; (c) what legislation has recently been enacted in the United States on this subject.
“Important distinctions exist between full-fledged socialism and public management of selected industries.” What are the distinctions?

Final. 1915.

Source: Harvard University Examinations. Papers Set for Final Examinations in History, History of Science, Government, Economics, Philosophy, Psychology, Social Ethics, Education, Fine Arts, Music in Harvard College. June 1915, pp. 39-59.

Image Source: Frank W. Taussig in Harvard Class Album, 1915.

Tags Burbank, ClarkWC, DavisJS, Day, Monroe, Taussig, Vanderblue, WrightPG

Courses Exam Questions Harvard

Harvard. Statistics Final Exam. Day, 1914-15

Post author By Irwin Collier
Post date 2017-08-27

Harvard’s 1914-15 statistics course in the department of economics was open to both undergraduate and graduate students. It was taught by Harvard Ph.D. (1909) and assistant professor, Edmund Ezra Day. The course announcement, enrollment figures, and the final examination questions come from three different sources, all of which are available on-line. Over the next few weeks, I’ll be posting corresponding material from the twenty economics courses offered during the 1914-15 year for which the final examination questions had been printed and subsequently published.

________________________

Course Announcement

Economics 1a¹. Statistics. Half-course (first half-year). Mon., Wed., Fri., at 11. Asst. Professor Day, assisted by Mr. F. E. Richter.

This course will deal primarily with the elements of statistical method. The following subjects will be considered: methods of collecting and tabulating data; the construction and use of diagrams; the use and value of the various types and averages; index-numbers; dispersion; interpolation; correlation. Special attention will be given to the accuracy of statistical material.

In the course of this study of statistical method, examples of the best statistical information will be presented, and the best sources will be indicated. Population and vital statistics will be examined in some measure, but economic statistics will predominate.

Laboratory work in the solution of problems and the preparation of charts and diagrams will be required. [p. 62]

Source: Division of History, Government, and Economics 1914-15. Official Register of Harvard University, Vol. XI, No. 1, Part 14 (May 19, 1914).

________________________

Course Enrollment

[Economics] 1a ¹hf. Asst. Professor Day, assisted by Mr. F. E. Richter.—Statistics.

Total 53: 23 Seniors, 22 Juniors, 4 Sophomores, 4 Others.

Source: Report of the President of Harvard College, 1914-15, p. 59.

________________________

Final Examination

ECONOMICS la¹

Formulate, if possible, practical definitions for use in statistical enumerations of the following: (a) cities; (b) farms; (c) manufacturing establishments; (d) the insane; (e) the blind. What are the essentials of a satisfactory statistical unit?
What three sorts of evidence may be employed to prove the inaccuracy of census enumerations of population? Which of the three is generally most effectively used?
Describe the different methods of estimating the growth of population. Under what circumstances is each method applicable? preferable? What method should you recommend for estimating the population of (a) Hartford, Connecticut; (b) Seattle, Washington; (c) the United States; (d) the United Kingdom?
In computing a crude birth-rate what disposition is made of (a) still-births; (b) multiple births; (c) illegitimate births? On what different bases may a crude birth-rate be refined? What are the objections to refining birth-rates? When is refining desirable?
What subjects are covered by the Census of Manufactures in the United States? What is the statistical value of the different results secured?
In the construction of index-numbers of prices, what are the advantages and disadvantages of (a) the weighted arithmetic mean; (b) the median? What are the more important difficulties in the construction of price indexes?
Discuss the reporting of crops in the United States with reference to (a) the bureaus engaged; (b) methods of securing data; (c) publication of results; (d) accuracy of results.
Define and briefly explain the uses of (a) the index-number; (b) logarithmic curve; (c) coefficient of dispersion; (d) coefficient of correlation.

Image Source: Edmund Ezra Day in Harvard Class Album, 1915.

Tags Day

Courses Exam Questions Harvard

Harvard. Accounting, Final Examination. J.S. Davis, 1914-15

Post author By Irwin Collier
Post date 2017-08-26

Harvard’s accounting course was open to both undergraduate and graduate students. It was taught by the Harvard Ph.D. (1913) and instructor of economics, Joseph Stancliffe Davis. The course announcement, enrollment figures, and the final examination questions come from three different sources, all of which are available on-line. Over the next few weeks, I’ll be posting corresponding material from the twenty economics courses offered during the 1914-15 year for which the final examination questions had been printed and subsequently published.

The course syllabus was transcribed and is available in a later posting.

An obituary for Davis written by Joseph H. Willits, “Joseph Stancliffe Davis, (1885-1975)” , was published in The American Statistician 30, no. 4 (1976), p. 199.

________________________

Course Announcement

Economics 1b. Accounting. Half-course (second half-year). Lectures, Mon., Wed., and (at the pleasure of the instructor) Fri., at 1.30; problems and laboratory practice, two hours a week. Dr. J. S. Davis, assisted by Mr. F. E. Richter and —.

This course will deal with the construction and the interpretation of accounts of various types of business units, designed to show the financial status at a particular time, the financial results obtained during a period of time, and the relation between the results and the contributing factors. In other words, it will be concerned with the measurement, in terms of value, of economic instruments, forces, products, and surpluses.

Some attention will necessarily be given to the fundamentals of book-keeping, but emphasis will be placed chiefly upon the accounting principles underlying valuation and the determination of profits and costs. Problem work will be regularly assigned, and published reports of corporations will serve as material for laboratory work. [p. 63]

Source: Division of History, Government, and Economics 1914-15. Official Register of Harvard University, Vol. XI, No. 1, Part 14 (May 19, 1914).

________________________

Course Enrollment

[Economics] 1b ²hf. Dr. J. S. Davis, assisted by Mr. F. E. Richter.—Accounting.

Total 119: 2 Graduates, 62 Seniors, 49 Juniors, 2 Sophomores, 4 Others.

Source: Report of the President of Harvard College, 1914-15, p. 59.

________________________

Course Final Exam

ECONOMICS 1b

Explain concisely five of the following: —

(a) “a controlling account”;
(b) “charging to capital”;
(c) “a sinking fund”;
(d) “a life insurance reserve”;
(e) “the five normal elements in cost”;
(f) “stores ledger.”

“The Depositors’ Guarantee Fund of Nebraska is to accumulate up to one and one-half per cent of the average daily [bank] deposits for the whole state, at the rate of one-half of one per cent for each of the first two years, then one-tenth of one per cent until the limit is reached, at which time assessments are to stop. No money is actually paid out by any bank except its proportionate share of losses arising from failures; the assessments are simply charged off from its profits and entered to the credit of the Depositors’ Guarantee Fund, which can be drawn upon by the State Banking Board.”

(a) What journal entries should a bank make (1) when an assessment of $5000 falls due? (2) when at the call of the State Banking Board it pays over $3000 as its share of a loss arising from the failure of another bank?
(b) Should a bank show “ Depositors’ Guarantee Fund “ on its balance sheet as an asset, a liability, or a proprietorship item?

From the following condensed but essentially complete statements, ascertain (taking each statement separately) the profits earned or the loss sustained during the year. Indicate the title each statement should bear.

(A)

	Dr.	Cr.	Assets	Liabilities
Real Estate and Plant	$40,000		$35,000
Merchandise		$15,000	10,000
Accounts Payable		10,000		$10,000
Cash	30,000		30,000
Capital		60,000		60,000
Expense	15,000		2,000

(B)

	Jan. 1	Dec. 31		Jan. 1	Dec. 31
Plant	$80,000	$70,000	Capital Stock	$100,000	$100,000
Receivables	45,000	50,000	Payables	65,000	75,000
Merchandise	30,000	25,000	Wages Accrued	5,000	5,000
Cash	50,000	60,000	Reserve for Ins.	…	10,000
Int. Prepaid	5,000	10,000	Surplus	40,000	25,000
(NOTE.—No dividends have been paid.)

(C)

Purchases	$100,000	Net Sales	$130,000
Wages	10,000	Interest Earned	4,000
Depreciation	6,000	Commission	6,000
Interest Expense	2,000
Miscel. Expense	12,000
Proprietor	10,000

Show journal entries for the first-named concern in each of the following transactions:—

(a) A department store raises cash by discounting at the First National Bank its 3-months’ note for $100,000, at 4%.
(b) Enterpriser having exhausted his personal credit, gets Goodfellow to accommodate him with a $5000 60-day note bearing interest at 6%, which Enterpriser immediately gets discounted at 5%.
(c) Retailer settles a bill of Manufacturer’s dated June 1, for goods listed at $150,000 and sold subject to a trade discount of 20% on terms ” 30 days net,” paying with a note maturing July 1.
(d) A railroad company buys steel freight cars at a cash price of $480,000, but pays for them with an issue of 4% 10-year bonds at 80.

Balance Sheet, January 1,1915.

Fixed Assets	$500,000	Capital Stock	$300,000
Current Assets	250,000	Bonds	300,000
Deficit	50,000	Current Liabilities	200,000
	$800,000		$800,000

You are asked what is the capital of a company showing the above balance sheet, which is assumed to be correct. What four possible correct answers might you give? In each case explain what the term “capital” signifies.

“The prospective investor in railroad securities should scrutinize very carefully any radical reduction in expenses that is made in either maintenance of way or maintenance of equipment; but a reduction in transportation expenses without any falling off in the revenue of the road may be fairly safely accepted as a reflection of increased efficiency.”

(a) Why this difference?
(b) Wherein would the company’s financial statements be falsified by excessive reductions in charges to maintenance?

“No rate of depreciation is at present prescribed by the commission, and although the companies are supposed to report to the Interstate Commerce Commission the rate which they use, they are at liberty to make this rate as low as they want to and are permitted to vary the rate from year to year. Furthermore, no charge for retirements is necessary until a locomotive is actually scrapped or sold. Let us assume, for a moment, that a road wishes to make a good showing by holding down maintenance of equipment expenses. Cars and engines which have become worn out or obsolete may be put on side tracks and neither scrapped nor sold, but new equipment bought. There is no way in which this can be detected from the maintenance . . . accounts.”

(a) How does this practice enable the roads to make “a good showing”?
(b) By what supplementary statistics, if any, can the practice be detected?
(c) Why should no rate of depreciation be prescribed?

“As the premium [on a bond] is nothing but the present worth of an annuity of the ‘difference of interest,’ so the various amortisations are nothing but the present worths of the different instalments of annuity.”
Explain the italicized terms and the statement.
What are the principal defects in present-day municipal accounting? What steps have been taken toward improvement?
State concisely the four most important accounting facts or principles which you have learned in this course. (Accuracy of statement and wisdom in selection will be considered in grading answers.)

Image Source: Joseph Stancliffe Davis, Harvard Class Album, 1916.

Tags DavisJS

Courses Exam Questions Harvard

Harvard. U.S. Economic History, Final Exam. Gay, 1915

Post author By Irwin Collier
Post date 2017-08-25

“Economic and Financial History of the United States” was a course open to both undergraduate and graduate students at Harvard taught by Edwin F. Gay. The course announcement, enrollment figures, and the final examination questions come from three different sources, all of which are available on-line. Over the next few weeks, I’ll be posting corresponding material from the twenty economics courses offered during the 1914-15 year for which the final examination questions had been printed and subsequently published.

The course outline and reading assignments for this course in 1911 has been transcribed earlier here at Economics in the Rear-View Mirror.

________________________

Course Announcement

Economics 2b. Economic and Financial History of the United States. Half-course (second half-year). Tu., Th., Sat., at 9. Professor Gay, assisted by —.

The following are among the subjects considered: aspects of the Revolution and commercial relations during the Confederation and the European wars; the history of the protective tariff policy and the growth of manufacturing industries; the settlement of the West and the history of transportation, including the early canal and turnpike enterprises of the states, the various phases of railway building and the establishment of public regulation of railways; banking and currency experiences; various aspects of agrarian history, such as the public land policy, the growth of foreign demand for American produce and the subsequent competition of other sources of supply; certain social topics, such as slavery and its economic basis, and the effects of immigration. [pp. 63-4.]

Source: Division of History, Government, and Economics 1914-15. Official Register of Harvard University, Vol. XI, No. 1, Part 14 (May 19, 1914).

________________________

Course Enrollment

[Economics] 2b ²hf. Professor Gay, assisted by Mr. A. H. Cole.—Economic and Financial History of the United States.

Total 131: 30 Graduates, 17 Seniors, 44 Juniors, 30 Sophomores, 10 Others.

Source: Report of the President of Harvard College, 1914-15, p. 59.

________________________

Final Examination

ECONOMICS 2b

(a) In the War of 1812, as well as in the embargo period, American shipping suffered; but with peace it nourished again. So too American shipping suffered in the Civil War; while afterwards shipping declined. How do you account for this?

(b) What justification, if any, is there for the following assertion: —

“In the case of England, the mail subvention system a wise and liberal policy, while in that of the United States it was a tax on the people to support a mistaken policy.”
Is a ship subsidy policy desirable for the United States at the present time?

Outline briefly your views as to the immediate influence of the Civil War on (a) land policy, (b) banking, (c) tariff, and (d) industrial progress North and South.
“The currency legislation from the close of the Civil War was a series of compromises.” What compromises? Why? Resulting in what legislative Acts?
In how far has the protective tariff been a factor in the development of the textile industries of the United States? What other factors have been operative?

Take two of the following questions.

“Surpluses have spelled disaster to the United States.” Do you agree? When and how?
Do you defend or oppose the movement toward industrial combination? State your reasons.
(a) Trace the relation between the competition of the coastal cities and the development of transportation.
(b) Summarize the important provisions of the amendments to the Interstate Commerce Act?

Image Source: Edwin F. Gay in Harvard Class Album, 1915.

Tags Gay

Courses Exam Questions Harvard

Harvard. 19th Century European Economic History, Final Examination. Gay, 1914-15

Post author By Irwin Collier
Post date 2017-08-24

“European Industry and Commerce in the Nineteenth Century” was a course open to both undergraduate and graduate students at Harvard taught by Edwin F. Gay. The course announcement, enrollment figures, and the final examination questions come from three different sources, all of which are available on-line. Over the next few weeks, I’ll be posting corresponding material from the twenty economics courses offered during the 1914-15 year for which the final examination questions had been printed and subsequently published.

The outline and reading assignments for this course in 1910-11 has been transcribed earlier here at Economics in the Rear-View Mirror.

________________________

Course Announcement

Economics 2a¹. European Industry and Commerce in the Nineteenth Century. Half-course (first half-year). Tu., Th., Sat., at 9.

Professor Gay, assisted by —.

Course 2a undertakes to present the general outlines of the economic history of western Europe since the Industrial Revolution. Such topics a the following will be discussed: the economic aspects of the French Revolution and the Napoleonic régime, the Stein-Hardenberg reforms, the Zoll-Verein, Cobden and free trade in England, labor legislation and social reform, nationalism and the recrudescence of protectionism, railways and waterways, the effects of transoceanic competition, the rise of industrial Germany.

Since attention will be directed in this course to those phases of the subject which are related to the economic history of the United States, it may be taken usefully before Economics 2b. [p. 63.]

Source: Division of History, Government, and Economics 1914-15. Official Register of Harvard University, Vol. XI, No. 1, Part 14 (May 19, 1914).

________________________

Course Enrollment

[Economics] 2a ¹hf. Professor Gay, assisted by Mr. A. H. Cole.—European Industry and Commerce in the Nineteenth Century.

Total 88: 21 Graduates, 18 Seniors, 27 Juniors, 16 Sophomores, 6 Others.

Source: Report of the President of Harvard College, 1914-15, p. 59.

________________________

Final Examination

ECONOMICS 2a¹

Comment on the following statement by a recent writer:
“The conjunction of three main factors was necessary to this radical transformation [the Industrial Revolution] — (a) surplus capital, (b) surplus labor, (c) a new market. Whenever these major quantities come together, the lesser conditions, such as invention, better communications, and a favorable state policy, will soon appear.”
Compare the attitude of the countries in the northern half of the Zollverein with those in the southern half as to governmental policy regarding railroads and the customs tariff. What is the connection between these policies and the agricultural situation in those regions?
What ground is there for the assertions that the land of the English landlord has been, since 1880, “a millstone about his neck,” and that he “has been treated as if the land did not belong to him”?
Outline the case for and against government ownership of railroads in Germany.
Compare the forms of industrial combination, trade unionism, and cooperation in England and Germany.
Was the situation of British trade “ominous” during the decade 1900-1910? Give the grounds for your view.

Image Source: Edwin F. Gay in Harvard Class Album, 1915.

Tags Gay

Courses Exam Questions Harvard

Harvard. Money, Banking, Commercial Crises. Final examination, Anderson, 1914-1915

Post author By Irwin Collier
Post date 2017-08-23

“Money, Banking, and Commercial Crises” was a course open to both undergraduate and graduate students at Harvard taught by Benjamin M. Anderson. The course announcement, enrollment figures, and the final examination questions come from three different sources, all of which are available on-line. Over the next few weeks, I’ll be posting corresponding material from the twenty economics courses offered during the 1914-15 year for which the final examination questions had been printed and subsequently published.

________________________

Course Announcement

Economics 3. Money, Banking, and Commercial Crises. Mon., Wed., Fri., at 2.30. Asst. Professor Anderson, assisted by —.

This course undertakes a theoretical, descriptive, and historical study of the main problems of money and banking. Historical and descriptive materials, drawn from the principal systems of the world, will be extensively used, but will be selected primarily with reference to their significance in the development of principles, and with reference to contemporary practical problems. Foreign exchange will be studied in detail. Attention will be given to those problems of money and credit which appear most prominently in connection with economic crises. Though emphasis will be thrown upon the financial aspects of crises, the investigation will cover also the more fundamental factors causing commercial and industrial cycles. [p. 64]

Source: Division of History, Government, and Economics 1914-15. Official Register of Harvard University, Vol. XI, No. 1, Part 14 (May 19, 1914).

________________________

Course Enrollment

[Economics] 3. Asst. Professor Anderson, assisted by Mr. E. E. Lincoln.—Money, Banking, and Commercial Crises.

Total 52: 1 Graduate, 14 Seniors, 27 Juniors, 1 Sophomore, 9 Others.

Source: Report of the President of Harvard College, 1914-15, p. 59.

________________________

Final Examination (2nd term)

Discuss the theory of foreign exchange. How would the acceptance of the quantity theory modify your discussion of this problem?
Trace the main events of the Panic of 1907, and indicate the conclusions that may properly be drawn therefrom with reference to monetary and banking reform.
To what extent are credit instruments used in the United States as a means of effecting exchanges? Contrast retail and wholesale transactions with reference to this point. Contrast city and country. How was the information on this point obtained?
Give an account of the main developments in the London money-market from the outbreak of the War till the end of February, 1915.
Explain: “puts”; “borrowing and carrying”; stock-exchange clearing house. Discuss the relations of the Stock Exchange and the banks in New York.
Indicate the comparative growth of State banking institutions and National banks since the beginning of the National banking system. What explanations can you give?
Contrast one-name and two-name paper. Should the Federal Reserve Board seek to reintroduce two-name paper? Give reasons.
Contrast England, Germany, France, Canada and the United States with reference (a) to note-issue, and (b) to use of deposits.
In precisely what ways does our Federal Reserve system seek to remedy the defects in our banking system?
Discuss the foreign exchange policy of the Bank of Austria-Hungary; of the Reichsbank; of the Bank of England.

Image Source: Benjamin M. Anderson in Harvard Class Album, 1915.

Tags Anderson

1947-48 HARVARD UNIVERSITY

ECONOMICS Aa

I. (One hour and a half)

II. (One hour and a half)

HARVARD UNIVERSITY THIS EXAMINATION PAPER MUST BE RETURNED TO THE PROCTOR

ECONOMICS Ab May 17, 1948

PART I

PART III

1947-48 HARVARD UNIVERSITY

I (Forty minutes)

II Answer any TWO questions (Twenty-five minutes each)

Modigliani remembers Northwestern

NORTHWESTERN UNIVERSITY Department of Economics Economics C-30 Mr. Modigliani

Fall Term 1961

C-30 MONETARY POLICY

Reading List I

Reading List II

Reading List III

Reading List IV

Final Examination December 14, 1961 8:00-10:00

ANSWER ANY FOUR QUESTIONS

CORE EXAMINATION Price Theory Winter, 1964

Preliminary Examination for the Ph.D. and A. M. Degrees

Course Description

First Week: Introduction Kaplan’s notes to Viner’s lectures

Oct. 7

I. Changes in econ. theory in last 10 years.

II. Most of econ. propositions are quantitative in nature, mathematical

III. Two types of analysis:

IV. Marshallian approach is a static equilibrium approach.

Oct. 8

I. We ordinarily assume a stationary economy in some sense (something not changing through time) in orthodox theory.

II. [Meaning of stable equilibrium]

III. Theorists are tending to work from individuals to aggregate rather than vice versa.

IV. Neo-classical theory is criticized as being abstract.

V. 4 kinds of purposes in economic analysis.

VI. Econ. is criticized for assuming the rationality of man

Oct. 9

I. Assumption of rationality.

II. [When the “means” themselves are “ends”]

III. What is rational attitude towards risk taking?

IV. Even Classical did not always assume rationality:

Suggested/Required Course Readings Compiled from Kaplan’s notes Notes on these readings ( made by Kaplan

Demand & Supply: Cost of Production

On Cobweb Adjustment

Empirical Analysis

Austrian Theory of Value

Joint Demand & Joint Supply.

Monopoly Value.

Distribution Theory

Some items mentioned as suggested readings

Not recorded as assignments in lecture notes, but reading notes were taken by Kaplan

Course Exams

ECONOMICS 301 [Perhaps midterm: Kaplan answers only for 1-3]

ECONOMICS 301 Thursday [December 18, 1941]

ECONOMICS 301 Friday [December 19, 1941]

Course Announcement

Course Enrollment

Mid-year Examination

ECONOMICS A

Final Examination

ECONOMICS A

Course Announcement

Course Enrollment

Final Examination

ECONOMICS la1

Course Announcement

Course Enrollment

Course Final Exam

ECONOMICS 1b

Course Announcement

Course Enrollment

Final Examination

ECONOMICS 2b

Course Announcement

Course Enrollment

Final Examination

ECONOMICS 2a1

Course Announcement

Course Enrollment

1947-48
HARVARD UNIVERSITY

I.
(One hour and a half)

II.
(One hour and a half)

HARVARD UNIVERSITY
THIS EXAMINATION PAPER MUST BE RETURNED TO THE PROCTOR

ECONOMICS Ab
May 17, 1948

1947-48
HARVARD UNIVERSITY

I
(Forty minutes)

II
Answer any TWO questions
(Twenty-five minutes each)

NORTHWESTERN UNIVERSITY
Department of Economics
Economics C-30
Mr. Modigliani

Final Examination
December 14, 1961
8:00-10:00

CORE EXAMINATION
Price Theory
Winter, 1964

First Week: Introduction
Kaplan’s notes to Viner’s lectures

Suggested/Required Course Readings
Compiled from Kaplan’s notes
Notes on these readings ( made by Kaplan

Not recorded as assignments in lecture notes,
but reading notes were taken by Kaplan

ECONOMICS 301
[Perhaps midterm: Kaplan answers only for 1-3]

ECONOMICS 301
Thursday [December 18, 1941]

ECONOMICS 301
Friday [December 19, 1941]

ECONOMICS la¹

ECONOMICS 2a¹