Chicago. Preliminary Graduate Examination in Economic Theory. Winter Quarter, 1958

The collection of price theory prelim exams from Chicago here at Economics in the Rear-view Mirror has just grown by another exam. What is particularly noteworthy about the copy that I have just transcribed is that it appears to have been recycled as a problem set sometime later by Zvi Griliches when he taught the second quarter of Chicago price theory, Economics 300b.

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Chicago Price Theory
Preliminary/Core Exams
Previously Posted

Summer 1949
Summer 1951
Summer 1952
Winter 1955
Summer 1955
Winter 1957
Summer 1960
Winter 1964
Winter 1965
Winter 1969
Summer 1975

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Note in pencil at top of page:

30 copies, Griliches Weds. 
300B Griliches Feb. 
take home problems

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ECONOMIC THEORY
Preliminary Examination
for the Ph.D. and A.M. Degrees
Winter Quarter 1958

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 after results on all preliminary examinations have been received.

Answer all questions. Time: Four hours.

Total Points: 240 (Equals number of minutes allowed for the examination.)

1. (60 points) Develop the major aspects of the theory of a competitive firm, and compare it with the theory of consumer behavior. What are the similarities and the differences between the two theories and the concepts used in each?
2. (50 points) Analyze briefly each of the following propositions: Marginal productivity analysis…
   1. proves that the existing distribution of income is ethically just;
   2. provides a basis for understanding the demand for factors of production;
   3. is a complete theory of the determination of the prices of production;
   4. provides a basis for understanding the supply of factors of production;
   5. does not apply in the case of fixed proportions.
3. (50 points) Indicate briefly the meaning of each of the following phrases, identify the economist (or economists) associated with each, and state some of his major contributions to economics:
   1. Engel’s Law
   2. Say’s Law
   3. Iron Law of Wages
   4. Schumpeterian innovators
   5. Conspicuous consumption
   6. Contract curve
   7. Elasticity of demand
4. (40 points) In calculating whether the government ought to undertake certain investment projects, a rate of interest is frequently used. How in principle would you determine what rate of interest is appropriate?
5. (40 points) It is argued in connection with the development of underdeveloped countries that basic industries such as steel should be developed by the government, since private investors will neglect the external economies brought to other industries by low-cost steel, and therefore will underinvest. Evaluate this argument. For what general class or classes of cases is the argument correct?

Source: Harvard University Archives. Papers of Zvi Griliches. Box 130. Folder “Preliminary Examinations, 1957-1965”.

Image Source: Social Science Research Building. University of Chicago Photographic Archive, apf2-07490, Special Collections Research Center, University of Chicago Library.