A

1. Define the word "laboratory."

2. Describe briefly a laboratory experiment.

3. What did this experiment teach?

4. Why is the laboratory method called the inductive method?

5. What is the difference between the science and the art of physics? of botany?

6. State some laws that are never mere tendencies; some that may be tendencies; and some that are always tendencies.

a. What is always the shortest distance between two points?

b. How does pressure on a gas affect its volume?

c. Do objects always move toward the center of the earth?

7. Why is consumption said to be fundamental?

8. What is the relation of consumption to production?

9. What is the difference between goods and utilities?

10. When does destruction create utilities? When does it not create utilities?

11. How does a locomotive engineer add utilities to a spool of thread ?

12. What is the distinction between productive and unproductive labor?

13. How do modern methods of exchange differ from primitive methods ?

14. State exactly the meaning of the term "distribution," as used in economics.

15. Explain the difference between the exchange and the distribution of goods.

B

1. Would you use inductive or deductive reasoning in working a problem in algebra ? in building a gas engine ? in starting a gas engine ?

2. Cite other instances where you have used inductive reasoning; deductive reasoning.

3. Name five unproductive occupations.

a. Why is each occupation unproductive ?

b. Were any of these occupations ever productive?

c. Are any of them likely to become productive ?

4. Why has money exchange very generally displaced barter exchange ?

a. Name any articles you have ever bartered.

b. With what difficulties did you meet?

c. How would money have obviated these difficulties?

5. Show how water may assume the various kinds of utilities.

6. Write three economic questions about a horse; three about a house; three about an automobile. Write about each of these three questions which are not economic.

7. Give examples of unproductive labor that is not criticized.

8. Mention some instances in which time, instead of destroying goods, increases their value.

C

1. Adam Smith held that labor to be productive must "realize itself" in some "particular subject or vendible commodity." a. How would Adam Smith have classified each of the following: i. Domestic servant ? ii. Soldier? iii. Policeman? iv. Violinist?

v. Lawyer? vi. Merchant? vii. Opera singer? viii. Public official?

b. How would you classify each of the above occupations?

Why?

c. What changes, if any, have occurred since the time of Adam

Smith regarding unproductive labor? 2. During the summer of 1918 a ruling of the War Department, concerning the employment of men of draft age, raised the question of productive and unproductive labor.

a. Is all labor productive ? Explain.

b. Is all productive labor essential?

c. Are the following productive: i. Farmers? ii. Preachers? iii. Teachers? iv. Athletic directors? v. Professional baseball players?

d. Which, if any, of the above perform essential labor? Why?

3. You sell a $30 suit to an old-clothes man for $5. Does this indicate that your wealth has been diminished? that the wealth of society has been diminished?

4. Distribution has long since become the most important notion in economic problems.

a. Who share in distribution?

b. Which group feels most strongly that its share is inadequate ?

Why?

c. What is the basis of this feeling?

Supplementary Reading

Ely, Outlines of Economics, 3d ed., pages 3-15.

Fetter, Economics, Vol. I, pages 3-10.

Fisher, Elementary Principles of Economics, pages 1-4.

Seager, Principles of Economics, pages 1, 2.

Seligman, Principles of Economics, 5th ed., pages 23-35.