Category: Exam Questions

One presumes that a departmental comprehensive examination would cover material that would be expected of any student going on to graduate studies in economics.  The comprehensive examination for Harvard economics majors from 1953 has been previously posted as has Swarthmore’s comprehensive examination for 1931.

A few things worth noting:

• Henry Simons and Paul Douglas were apparently enough at odds with each other’s economics to be unable to come up with a single principles examination in Part I.
• Both accounting and basic statistics shared equally in the quantitative Part II.
• Either U.S. or European Economic History was required to be one of the three field examinations in Part III. A student could even take both economic history examinations, so one can say economic history was very much part of the common core for economists-in-training.
• From today’s perspective it is interesting to find that “transportation” was a field still having equal status with “labor” and “government finance”.

According to a handwritten note attached to the following comprehensive exam was used four times:  Spring 1940, Winter 1941, Autumn 1941, and (with slight correction) Winter 1942.

__________________

PART I

COMPREHENSIVE EXAMINATION FOR THE BACHELOR’S DEGREE IN ECONOMICS

(Start each new subject in a new examination book)

The comprehensive examination in Economics is divided into three parts:

PART I — Time: Approximately 2 ½ hours.

(a) Principles of Economics
(b) Principles of Money and Banking

PART II — Time: Approximately 2 ½ hours.

(a) Elementary Accounting
(b) Statistics

PART III — Time: Approximately 3 hours.

Write on either (a) or (b) and two other subjects. One of these may be the second subject in Economic History.

(a) Economic History of the United States
(b) Economic History of Europe
(c) Labor
(d) Government Finance
(e) Transportation

PART I

(a) Economic Principles

Write on either examination A or examination B. In view of the difference in reading lists, examination A is offered primarily for those who did their work in Economics 209 with Mr. Douglas, while examination B is for those who had this course with Mr. Simons.

Examination A.
(Answer all questions.)

1. Describe in some detail why the demand curves for the products of an industry are negatively inclined and give and illustrate the formula for the measurement of elasticity.
   Why, under atomistic competition, is the demand curve for the products of an individual firm of infinite elasticity and indicate by graphs what forces determine equilibrium for the individual firms (a) with no alternation in their number, (b) in the longer run, where the numbers of firms may vary but where there is no change of the scale of the individual plant, (c) in the still longer run when both the numbers and the scale of plants vary.
2. Discuss and illustrate equilibrium under conditions of “imperfect competition,” showing (a) the role of average and marginal revenue curves, (b) average and marginal cost curves. Discuss both short-run and long-run equilibrium and the light such conclusions throw upon whether competition is or is not desirable, the proper role of the state, etc.
3. Trace the theory of production, showing the relative effect upon product of changes in the quantities of the three factors of production, i.e., land, labor and capital, and the steps by which the theory of distribution can be derived from the theory of production.

Examination B.
(Answer both questions.)

1. (50 points)
   In an isolated community there are two kinds of land, and only one product, wheat. There are 100 farms of each The labor supply is homogeneous—i.e., all workers are equally efficient. There is private property in land and free contract for labor. Labor services are bought and sold only in units of one laborer per year. The markets for both labor and land (unless otherwise specified) should be assumed to be freely competitive.
   The table below shows the amounts of wheat which can be obtained from onesingle farm of each grade, with different numbers of laborers per year.

The labor population is 450 — all workers will seek to be fully employed at any wage rate above zero.

a. What will be the wages per man? Explain why.

b. What will be the rent of farms of each grade?

c. Explain how the productivity (product increment) of an A-grade farm may be determined.

d. What would happen to wages and rents if an output tax of 5 per cent were imposed upon the production of wheat?

e. What would happen to wages and rents if a tax of 100 bushels per farm were levied, the tax being payable by owners?

f. Suppose a minimum wage law is passed and enforced, requiring the payment of at least 700 bushels per year for labor. What will be the effect on total employment and on rents?

g. Suppose that workers on the A-grade farms organize into a trade union and enforce a minimum wage of 700 bushels per year on the A-grade farms. What will happen to rents? To numbers of workers employed on A-grade farms? To the wages of workers not employed on A-grade farms?

h. Suppose that workers organize only on the B-grade farms and enforce there a wage of 700 bushels per year. What will happen to rents? To wages on the A-grade farms?

2. (50 points)
   Indicate the conditions or circumstances under which each of the following relationships is likely to obtain, in the short run if not in the long run, and explain briefly in each case:
   1. Marginal revenue is equal to price.
   2. Price is equal to average expense (total cost per unit) but far in excess of marginal expense.
   3. Marginal expense, for the industry as a whole, fare exceeds marginal expense for the individual firm.
   4. All firms in a highly competitive industry are maintaining outputs at which their average-cost curves are falling (negatively sloped).
   5. All firms in a highly competitive industry are maintaining outputs at which their marginal-expense curves are falling.
   6. The price of a productive service is equal to its product increment times product price.
   7. The price of a productive service is much less than its product increment times product price.
   8. The price of a productive service is much less than its product increment times marginal revenue (for the firm).
   9. The total output of all firms in an industry is such that marginal revenue, for the industry as a whole, is negative.
   10. Marginal expense and average expense are equal but both are far in excess of product price.

(b) Principles of Money and Banking

(Answer all parts in questions 1 and 2; if time permits answer question 3.)

1. (25 points)
   The following statements are to be completed by filling in the blanks with the most nearly correct of the suggested answers:
   1. Excess reserves of the member banks of the Federal Reserve System are currently about _______ million dollars. (100; 1,000; 1,500; 3,500; 18,700)
   2. The Federal Open Market Committee consists of _______ (5; 7; 9; 12;19) members, of which (1; 3; 5; 7; 12) are members of the Board of Governors of the Federal Reserve System and the remainder selected by ____________________ (President of the U.S.; Board of Governors; U.S. Secretary of the Treasury; directors of the Federal Reserve banks).
   3. In recent months holdings of U.S. Government securities (direct and guaranteed) by the Federal Reserve banks have totaled about _______ million dollars (25; 500; 2,500; 6,000).
   4. A member bank in downtown Chicago is at present required to hold with its Federal Reserve Bank an actual net balance equal to _______ (10; 13; 17½; 22¾; 26) per cent of its net demand deposits.
   5. If the U.S. Treasury were to shift its present deposits from member banks to the Federal Reserve banks, excess reserves of member banks would probably _______ (increase; decrease; remain unchanged) and excess reserves of the Federal Reserve banks _______ (increase; decrease; remain unchanged).
   6. The Board of Governors of the Federal Reserve System is authorized to decrease existing reserve requirements for reserve city member banks to a minimum level of _______ (5; 13; 17½; 20; 100) per cent against its net demand deposits.
   7. The total volume of hand-to-hand money in circulation in the U.S. (in the hands of the public and in banks’ vault cash) has recently been approximately _______ (600; 8,000; 10,000; 50,000) million dollars, of which approximately _______ (0; 5; 25; 30) per cent has consisted of gold coin.
   8. In recent years member banks have held approximately _______ (10; 25; 55; 85; 98) per cent of all demand deposits (excluding inter-bank deposits) in all commercial banks of the country.
   9. If the Federal Reserve banks sold their present holdings of U.S. Government securities to the public, excess reserves of banks in the country would probably _______ (increase; decrease; remain unchanged).
   10. In computing its demand deposits subject to legal reserve requirements, a member bank may deduct from its gross demand deposits _______ (U.S. deposits held with it; balances due from other domestic banks except Federal Reserve banks; its vault cash; balances due to other domestic banks).
   11. In giving a correct statement of the quantity theory of money, it is necessary to state among other things the assumption _______ (that wage rates remain constant; that the country is not on a paper monetary standard; that the economy to which it refers is perfectly competitive; that the theory may not be applicable in the short run).
   12. The monetary gold stock of the United States is currently approximately _______ (3.5; 7.0; 22; 25) billion dollars.
   13. Treasury purchases of imported gold will result in the greatest reduction in excessreserves of banks (not including Federal Reserve banks) when the Treasury pays for the gold by _______ (issuing new gold certificates; borrowing funds from the public; borrowing funds from commercial banks; borrowing funds from the Federal Reserve banks).
   14. Time and demand deposits (excluding interbank deposits) in all banks of the United States currently total about _______ (25; 40; 60; 75) billion dollars, of which amount approximately _______ (10; 25; 40; 60; 98) per cent is fully insured by the Federal Deposit Insurance Corporation.
   15. Under present conditions the Federal Reserve banks can most effectively reduce excess reserves of member banks by _______ (raising the discount rates of the Federal Reserve banks; selling their holdings of U.S. Government securities on the open market; raising the legal reserve ratios of member banks to 100%).
2. (75 points)
   A recent annual report of the Board of Governors of the Federal Reserve System contained the following statement:
   “Under existing conditions the Treasury’s powers to influence member bank reserves outweigh those possessed by the Federal Reserve System.”
   1. State briefly and concisely the powers of the U.S. Treasury to influence member bank reserves; evaluate and explain their importance with reference to:

(1) Increasing member bank excess
(2) Decreasing member bank excess reserves.

1. 2. If the Treasury were to use certain of its powers, it could increase its cash holdings (without borrowing or taxing) by 10 billion dollars. Assume that it does so today, and that it spends the 10 billion dollars for national defense goods (in addition to the expenditures previously budgeted) during the next two years. Analyze the effects of the spending, including in your analysis statements concerning the effects on:

(1) Employment and national income.
(2) The cash position of the public.
(3) The reserve position of commercial banks.
(4) The powers of the Federal Reserve System to reduce member bank excess reserves.
(5) Relative changes in important groups of prices.

Of what help is the quantity theory of money to you in explaining the price fluctuations of (5)?

3. (30 points)
   (If time permits)
   Defend your answers to parts e, I, m, and o of question 1.

PART II

(a) Elementary Accounting

(Answer all questions; plan to spend at least 40 minutes on question 4.)

1. Debits and Credits
   Directions: Read the data given and select from the “Numbers To Be Used” the appropriate debit and credit to be used. Write the numbers of these accounts in the appropriate column, indicating in each case the kind of account (A-L-P-E-I).

Numbers to be Used

2. The following statements are to be marked by circling “T” if true, or “F” if false. A statement which is in any part incorrect is to be considered false.

T or F. The declaration of cash dividends results in a current liability on the balance sheet.

T or F. For a corporation having only common stock outstanding, the book value of the common stock is equal to the result obtained by dividing the difference between the total assets and the total liabilities by the number of common shares outstanding.

T or F. Customers’ accounts with credit balances should be shown on the balance sheet as current liabilities.

T or F. If the ending raw materials inventory is valued at too low a figure (other data on the statements correct), the cost of goods sold will be too small.

T or F. If depreciation of an asset is overestimated, that asset will be overvalued on the balance sheet.

T or F. A partnership is always automatically dissolved by the death of any one of its members.

T or F. Stock-dividends declared but not yet issued are shown on the balance sheet as current liabilities.

T or F. If all the stockholders of a corporation die, the corporation ceases to exist.

T or F. Holders of cumulative preferred stock have an unconditional right to dividends that are in arrears.

T or F. If the goods in process inventory at the beginning of an accounting period is overstated (other data on the statements correct), the gross profit for that period will be too small.

T or F. A corporation with a $200,000 surplus account could have no difficulty in paying a $100,000 cash dividend to stockholders.

T or F. Patents are written off to factory expense over the period of their economic life which cannot be more than 17 years.

T or F. Capital surplus represents the amount of profits which the stockholders and directors have been willing to leave invested in the business.

T or F. Expenditures which increase the usefulness of an asset, or prolong its life, are capital expenditures.

T or F. The introduction of controlling accounts for expenses makes necessary some change in the form of the journals used by that business.

T or F. Discount on Stock may be correctly shown on the balance sheet as a deferred charge.

T or F. A sinking fund reserve is set up to prevent the use of sinking fund cash for dividend purposes.

T or F. Preferred stock is never entitled to preference in the distribution of assets in liquidation, unless specified in the stock agreement.

T or F. A firm which has incurred a loss for the year may have more cash on hand at the end of the year than it had at the beginning of that year.

T or F. The cost of repairing a second-hand machine, before it is put to use in the factory, should be charged to factory expense.

3. You are given a Statement of Profit and Loss of the Northwestern Manufacturing Company for the year ended December 31, 1940. Profit is shown as $121,380 Upon investigation you find that the accountant had proceeded as follows:
   1. Inventory had been valued at Market, $180,000; Cost was $150,000.
   2. Depreciation had been calculated on new machinery (purchased January 1, 1940) at a 10% rate. The general experience of competitors indicated that the life of the equipment was five years. The cost of the machine under question was $38,000.
   3. Wages due salesman for services rendered, $8000, had been overlooked.
   4. A garage owned by the Company was destroyed by fire. The building had a book value of $30,000. The insurance company had agreed to pay $20,000. The Company had signed a release but no record had been made of the fire or agreement.
   5. Accounts Receivable were valued at Gross, $200,000.
   6. Competitors had found that about 2% of gross accounts were uncollectible. About $1000 in cash discounts applicable to 1940 were expected to be taken.

What changes would you make on the Balance Sheet and the Statement of Profit and Loss for each of the above items?

4. List the problems associated with the valuation of fixed assets: (a) at the time of acquisition, (b) of changes subsequent to the time of acquisition. Explain the relationship between these problems and cost determination in a manufacturing enterprise. Suggest solutions which the accountant has used in the past and discuss these critically in terms of economic theory.

(b) Statistics

(If time permits, answer all questions; note the unequal weighting, however. Plan to spend approximately 30 minutes on question 3.)

1. (25 points)
   In the space to the left of each of the following statements indicate whether the statement is true (T) or false (F). Do not guess; if you don’t know whether a statement is true or false, don’t market.

_____ a. In a series of positive numbers the algebraic sum of the deviations of the individual items from their arithmetic mean is positive.

_____ b. In a simple linear correlation the slopes of the two elementary regression lines are always the same.
_____ c. Fisher’s Ideal Index Number formula satisfies both the time reversal and factor reversal tests.
_____ d. A moving average of points which lie along a straight line will reproduce the line.
_____ e. The sum of the squared deviations from the median of the frequency distribution is less than the sum of the squared deviations from any other average of the same frequency distribution.
_____ f. In simple linear correlation the two elementary lines of regression are identical if the simple correlation coefficient (r) is plus one and perpendicular to each other if the simple correlation coefficient is -1.
_____ g. The time series of the population of the United States plots is a straight line on semi-log paper; therefore, we may conclude that the population of the United States has grown at a constant relative rate.
_____ h. The simple correlation coefficient (r_yx) is the arithmetic mean of the two simple regression coefficients (b_xy and b_yx).
_____ i. In every frequency distribution 68% of the cases lie within plus and minus one standard deviation from the arithmetic mean.
_____ j. If the simple linear correlation coefficient between X and Y is small, it shows that there is very little relationship of any kind between X and Y.
_____ k. The standard error of estimate for the regression of Y on X depends upon the units in which Y is measured.
_____ l. The aggregative price index with base year quantity weights is identical to the arithmetic index of price relatives weighted by values of the base year.
_____ m. The sampling distribution of means of samples (all of the same size) drawn at random from a normal universe is also normal.
_____ n. The product of the individual items of a series of numbers is unchanged if each of the items is replaced by the geometric mean.
_____ o. The ratios-to-trend method of obtaining an index of seasonal variation is valid only if the underlying trend his linear.
_____ p. If the probability of getting a tail in a single toss of a bias coin is 1/4, the probability of getting three heads in three independent tosses of the same coin is 3/4.
_____ q. The sampling distribution of means of samples (all of the same size) drawn at random from a non-normal universe is less normal than the universe itself.
_____ r. The standard deviation of the sampling distribution of means drawn at random depends upon the size of the samples.
_____ s. The simple geometric average of relative prices satisfies the time reversal test.
_____ t. If a frequency distribution is symmetric when plotted on the arithmetic scale, the geometric mean, the median, and the mode will all coincide.
_____ u. If a frequency distribution is symmetric when plotted with a logarithmic scale on the X-axis, it will be skewed when plotted on the arithmetic scale.
_____ v. The harmonic mean of a series of positive numbers is sometimes greater in the geometric mean.
_____ w. The median is less affected than the arithmetic mean by the magnitude of extreme observations.
_____ x. The probability that two independent observations drawn at random from the same normal universe will both deviate by more than one standard deviation from the arithmetic mean of the universe is approximately 0.32 (= 32%).

2. (35 points)
   State the reasoning behind your answer to the following parts (seven in all) of question 1:

(a or n)
(b, f, or h)
(c or s)
(i)
(j)
(p or x)
(r)

In each case, if you marked the statement true demonstrate its truth; if you marked it false, revise it so that it is correct, and demonstrate that your revision is true. Use mathematics where convenient.

3. (40 points)
   The ABC Corporation which manufactures and sells over 1,000,000 packages of cigarettes (20 cigarettes per package) per year advertises of that on the average their cigarettes will burn for 15 minutes (per cigarette).
   The XYZ Corporation, making and selling over 2,000,000 packages of cigarettes per year (20 cigarettes per package) asserts that on the average its cigarettes will burn for 16 minutes (per cigarette).
   The Honesty-in-Advertising Association samples each manufacturer’s cigarettes, taking one sample of 145 cigarettes (not packages) of each Corporation’s. The following is a tabulation of their findings:

On the basis of the above findings,

a. Do you feel that the claims of each manufacturer are justified?

b. Do you feel that XYZ cigarettes on the average burn longer than ABC cigarettes.In answering these questions make use of whatever relevant logical techniques you have learned. State your reasoning carefully; your reasoning is even more important than your arithmetic.
Note: The square root of 52 is 7.2.

PART III

Write on either (a) or (b) and two other subjects.
One of these may be the second subject in Economic History. (Approximately 3 hours).

(a) Economic History of the United States

(Answer the first three questions and, if time remains, the fourth.
Answer in outline form so far as possible.)

1. Briefly describe or explain.

a. colonial indentured servant;
b. growth of slavery in the colonies;
c. coinage act of 1792;
d. rise of steamboats in the Mississippi Valley;
e. tariff of 1833;
f. railroad land grants of 1862-71;
g. transportation act of 1920;
h. War Industries Board;
i. Congress of Industrial Organization;
j. wages and hours act of 1938.

2. Enumerate the chief causes for:

a. adoption of the public land act of 1820;
b. decline of canals after 1860;
c. decline of the general price level, 1865-1896;
d. shifted to a favorable balance of commodity trade after 1873;
e. restriction of immigration after 1921;
f. distressed condition of agriculture since 1920;
g. demand for a New Deal in 1933.

3. Compare the chief exports and imports of about 1860 with those of the post-World War period. Carefully explain the chief economic developments responsible for the changes that took place.
4. Outline and explain the history of the merchant marine, 1789-1940.

(b) Economic History of Europe

(Answer two questions.)

1. Discuss the significance of any two of the following authors for the student of modern European economic history: Buckle, Tawny, Spengler, Clapham.
2. Compare the role of the state in industrial enterprise in France and England during the seventeenth century. Did the French or the English government do the most for the general welfare of its people by its industrial policies?
3. Compare the influence of either the railway or the canal upon the economic development of France, England, and Germany.

(c) Labor

(Answer both questions.)

1. Discuss:

a. the main features of the various state minimum wage laws and the federal Fair Labor Standards Act;
b. the economic theories upon which they are based;
c. the constitutional issues involved.

2. Discuss the issues involved as regards structure, membership, aims and methods in the following struggles:

a. The A. F. of L. versus the Knights of Labor.
b. The I.W.W. versus the A. F. of L.
c. Shop committees (or so-called employee representation plans or as sometimes termed “company” and “independent” unions) versus so-called “outside” unions.
d. The C.I.O versus the A.F. of L.

(d) Government Finance

(Answer all questions.)

1. (35 points)

Mark each of the following propositions “True” or “False” and explain briefly (on separate paper):
The exemption, under federal personal-income tax, of interest on the obligations of state and local governments
_____ a. Involves a kind of federal subsidy or grant which is not commendable in terms of the basis on which the different states share relatively.
_____ b. Probably involve serious inequity as among large income receivers of similar income circumstances.
_____ c. Lowers the rate of interest which state and local governments must pay on their new borrowings.
_____ d. Probably serves to retard or delay recovery from severe depressions.
_____ e. Imposes indirectly a significant burden upon persons of small income in their capacity as savers.

2. (25 points)
   It is often argued that income taxes, while having great merit in other respects, are ill-suited for a predominant place in revenue systems because their revenue-yield fluctuates so widely between years of prosperity and depression. Are such wide fluctuations a fault or virtue in a federal tax? Discuss.
3. (25 points)
   In spite of its excellent cumulative features, the federal gifts tax leaves large opportunities for avoidance of estates tax through the distribution of property by gift. Explain “cumulative features”; and indicate the relevant facts about the law which have to do with the avoidance opportunities.

(e) Transportation

(Answer all questions. Note weighting of questions.)

1. (10 points)
   In the following statements, underline the figure, or concept, that most nearly accords with accuracy.
   1. Operating expenses of a railroad may be expected to vary in accordance with:
      tons of freight carried; passenger-miles; train-Miles; car-mile; miles of track
   2. The standard gauge of American railroads is:
      3 ft. 6 in.; 4 ft.; 4 ft. 8 in.; 5 ft. 2 in.; 5 ft. 5 in.
   3. The average freight traffic density of American railroads is:
      100,000; 500,000; 1,000,000; 1,500,000; 5,000,000; 10,000,000
   4. The Interstate Commerce Commission was given power to prescribe actual railroad rates in:
      1906; 1903; 1887; 1911; 1920
   5. The carrying capacity of ocean ships is customarily expressed by:
      gross registered tons; deadweight tons; net registered tons; displacement tons; cargo tons of 40 cu. ft.
   6. The regulation of the rates of waterway common carriers in interstate commerce was authorized by Congress in:
      1900; 1916; 1920; 1933
2. (15 points)
   The following diagram represents two railroad roots and 6 stations, the figures indicating the mileage between each pair of stations. The East and West Railroad serves all these points.

Indicate which of the rate situations stated below are departures from the provisions of the 4^th Section of the Interstate Commerce Act:

a. A rate of 50¢ on commodity “X” from A to E, and 75¢ from E to B.

b. A rate of 25¢ on commodity “X” from A to B, and 20¢ from A to C.

c. A rate of 40¢ on commodity “X” from A to D, and 60¢ on commodity “Y” from A to C.

d. A rate of 45¢ on commodity “X” from A to C, and 50¢ on the same commodity from C to E.

e. A rate of 75¢ on commodity “X” from A to F via C, and 50¢ from A to F via E on the same commodity.

3. (10 points)
   Draw up definitions of “common carrier” and “contract carrier” for the purpose of establishing a system of regulation of water carriers in interstate commerce of the United States.
4. (20 points)
   The following diagram represents the line of a single railroad with 8 stations. The numbers represent the distances between stations:

Suppose that the rate structure on traffic between these points is represented by the 1st and 5th class rates, and commodity rates on furniture, and steel products, such as sheets, bars, rods.

Assume neither water nor highway competition. What departures from principles of rate-making do you detect in this rate structure?

5. (15 point)
   The Omnibus Transportation Bill which passed in the House of Representatives last Summer, inter alia, contain the following provisions: “In order that the public at large may enjoy the benefit and economy afforded by each type of transportation, the Commission shall permit each type of carrier or carriers to reduce rates so long as such rates maintain a compensatory return to the carrier or carriers after taking into consideration overhead and all other elements entering into the cost to the carrier or carriers for the service rendered…”Should such a provision be finally adopted into the law and seriously enforced by the Commission, what effect presumably would it have on the freight rate structures, and on the distribution of commodities? Why?

6. (10 point)
   In which of the following cases is a certificate of public convenience and necessity required? Check the affirmative cases.
   1. A railroad desires to refund a maturing issue of bonds.
   2. Two motor highway common carriers wish to consolidate properties and operations.
   3. John Smith wishes to inaugurate a highway service between Chicago and St. Louis. He has a contract with a St. Louis manufacturer to haul enamel ware to Chicago; and this will take all his facilities northbound. But he desires to secure return loads and will haul any traffic that is offered.
   4. A railroad is about to acquire a new Diesel stream-lined train.
   5. A water common carrier, finding operations entirely unprofitable, decides to abandon operations.
7. (10 points)
   A common carrier subject to the jurisdiction of the Interstate Commerce Commission files a tariff containing new schedules of rates, embodying a number of changes. Which of the following statements most accurately describes the Commission procedure in dealing with the tariff.
   1. The tariff is passed around among the 11 commissioners, each of whom examines it for possible violations of the first four sections, and the 6 Section of the Act. If the majority of prove it, the tariff is accepted.
   2. The Commission refers it to the standing rate committees of the carriers for determination of the lawfulness of the rates contained therein.
   3. The tariff is received by the Terrace Bureau of the Commission, and checked by its rate clerks for conformance to the provisions of the sixth Section of the Act. If conforming thereto, it is accepted and is permitted to become effective.
   4. The tariff is returned to the carriers with the statement, that since the burden of proof rests upon the carriers to justify the new rates, they must prove that the rates are lawful under the Act before the tariff can be allowed to become effective.
8. (10 points)
   An ocean steamship line quotes a rate of $10 W/M on automobiles, New York to Liverpool. What would be the ocean freight on an automobile so shipped, weighing 4,000 pounds boxed, and measuring 120 in. by 60 in. by 50 in.?

Source:  University of Chicago Archives. Department of Economics, Records. Box 39, Folder 28.

Image Source: Element from the Social Science Research Building. University of Chicago Photographic Archive, apf2-07449, Special Collections Research Center, University of Chicago Library.