A

1. Why is land the most fundamental factor of production?

2. Why is capital less fundamental than either land or labor ?

3. Distinguish between capital and land; capital and consumers' goods.

4. Does capital yield a product apart from the employment of labor ? Explain.

5. What are the advantages of division of labor?

6. Suggest ways of lessening the disadvantages arising from the division of labor.

7. What factors may limit the division of labor in any industry?

8. What is the relation between the corporative form of organization and division of labor ?

9. Why is division of labor in agriculture not practiced to any great extent ?

10. How does territorial division of labor increase the efficiency of production ?

11. What is the present tendency in the United States as to territorial division of labor ?

12. Point out the relation between division of labor and large-scale production; between the corporative form of organization and large-scale production.

13. Are there any advantages in large-scale production in agriculture ? Explain.

14. What are the limits to large-scale production?

15. What are the present tendencies as to large-scale production in manufactures ?

B

1. Make a list of consumers' goods.

a. Explain why each is a consumers' good.

b. Can any of them be producers' goods ?

c. What is the essential difference between consumers' goods and producers' goods?

2. From your own experience or observation describe the division of labor carried on in some shop or factory.

3. Call to mind persons who produce all the goods they consume; who produce a portion of the goods they consume; who produce none of the goods they consume. Which is the largest group ? Why ?

4. Make a list of common schoolroom objects, such as desk, blackboard, book, crayon, ink, eraser, and note the importance of territorial division of labor.

5. Mention several industries in the same line.

a. In which is division of labor best developed?

b. Show how there is room for greater development.

c. In which is division of labor least developed ?

d. Account for this lack of development.

e. Which of the two has the greater capital? f. Which is the more enterprising?

g. Suggest methods of improvement.

C

1. A well-known retail merchant once said that the cornerstone of any business success is honesty.

a. What did he mean by the expression "honesty"?

b. Is an employee thoroughly honest who: i. Shirks his duties? ii. Keeps one eye on the clock? iii. Places his employer's interests second to his own?

c. What is your opinion of the axiom, "Honesty is the best policy"?

2. It is believed by many people that each section of the country would be greatly benefited by becoming self-sufficing.

a. If such were the case, would there be more or less goods produced ?

b. How would such a condition affect wealth ? welfare ?

c. How do the railroads regard self-sufficiency?

3. Comment on the following statements: a. "Division of labor is the unconscious cooperation of the members of society." b. "Producers' goods ripen into consumers' goods." c. "Large-scale production in any industry is limited only by the amount of capital which that industry can control."

Supplementary Reading

Bullock, Introduction to the Study of Economics, 3d ed., pages 149-

156, 176-184. Ely, Outlines of Economics, 3d ed., pages 19-21, 124-129. Fisher, Elementary Principles of Economics, pages 193, 450, 451. Johnson, Introduction to Economics, pages 110-120. Seager, Principles of Economics, pages 153-169. Seligman, Principles of Economics, 5th ed., pages 290-296. Taussig, Principles of Economics, 2d ed., Vol. I, pages 30-66.