Elementary economics manual

Preface

The primary purpose of this manual is to meet the needs of the classes in elementary economics in the University of Wisconsin. It is the fifth revision and enlargement of a syllabus printed by the author for the use of his students in Washington and Lee University in 1908. Each revision has involved changes to remedy defects which actual experience in the class room have revealed.

Some new problems and quiz questions have also been suggested from time to time by members of the teaching staff and have finally become incorporated in the sets of problems found in this book.

This manual is based upon and designed for use in connection with Ely's Outlines of Economics. All the chapter headings and chapter numbers follow this text, with the exception of the chapters on Labor which are arranged with special reference to chapters 6, 7, 8, 9 and 10 in Carlton's History and Problems of Organized Labor. Outlines of recent laws such as the Federal Eeserve Act, the Newlands Arbitration law and the new Anti-Trust Act, have also been included in order to make possible uniform required readings on these subjects.

While the definitions and summaries may be considered very dogmatic when viewed from the standpoint of advanced economic theory, it appears to the writer that a larger amount of positiveness is necessary when teaching beginners than is advisable in advanced courses. Collateral reading and class discussion is relied upon to bring out the controversial aspects of the theories outlined.

The definitions and summaries are intended primarily to give definiteness and unity to the teaching in the quiz sections. Some of the definitions are the result of compromises growing out of discussions carried on in the weekly conferences of the instructors in charge of quiz' sections in the course. Among the men who in this way have directly and indirectly contributed to this work are :

Mr. Lee Bidgood, Professor of Political Economy, University of Alabama. Mr. F. H. Bird, Expert with the Federal Relations Commission.

YI Preface

Dr. E. H. Downey, Lecturer Political Economy, University of Wisconsin.

Dr. J. A. Estey, Associate Professor Political Economy, Purdue University.

Mr. Clytus B. Freeman, Special Agent, Census Bureau.

Dr. L. C. Gray, Professor of Political Economy, University of Saskatchewan.

Mr. Harry Jerome, Assistant in Economics, University of Wisconsin.

Mr. Wm. H. Kiekhoefer, Assistant Professor of Political Economy, University of Wisconsin.

Dr. W. I. King, Instructor Political Economy University of Wisconsin.

Mr. W. E. Leonard, Instructor Economics, University of Texas.

Mr. H. T. Lewis, Professor Economics, University of Idaho.

Mr. J. G. McKay, Assistant in Economics, University of Wisconsin.

Dr. Horace Secrist, Associate Professor Economics, Northwestern University.

Mr. S. L. Odegard, Expert with the Wisconsin Eailroad Commission.

Mr. H. D. Simpson, Instructor in Economics, University of Wisconsin.

Mr. E. S. Trent, Instructor in Economics, University of Wisconsin.

Mr. H. E. Trumbower, Assistant Professor Political Economy, University of Wisconsin.

To each and all of them the author is indebted for suggestions as to form and content of definitions, questions and problems.

T. K. URDAHL.

Contents

Chapter

Directions to Students 1

I. Nature and Scope of Economics 5

Chapter I. Nature And Scope Of Economics

Questions on the text.

1. What is a science? Is economics a science?

2. Is economics concerned primarily with wealth or man?

3. What two kinds of poverty are there? What determines

whether a man is really rich or not?

4. Is the chief aim of economics to teach men how to get rich ?

5. Is economics primarily a practical, i. e., vocational study;

is it primarily cultural?

6. Name the chief groups of sciences.

7. To what group does economics belong? Name four other

sciences in this group.

8. What is the principal difference between this group and the

other groups of sciences?

9. What is a scientific law? Contrast with a statutory law;

with an ethical law; with the laws of mathematics.

10. Why are economic laws less eternal and invariable in

their application than the laws of physics or chemistry?

11. May these laws ever be changed by the conscious effort of

man himself? How?

12. What is the difference between natural selection and arti-

ficial selection? How does this bear upon economic laws ?

13. With what kinds of economies is economic science most

concerned ?

14. Contrast the size of the modern economic unit or area with

the mediaeval unit or area. How has the European war affected your well being?

15. "Man has progressed from independence to dependence,

and from dependence to interdependence." Explain.

16. What are the chief purposes of economic study ?

17. Why is economic study more important today than ever

before ?

Problems.

1. Read the headings of the leading articles in the current

number of the Literary Digest and state which ones are largely economic in character.

2. Read accounts of candidates for office in the state primary

bulletin and estimate the percentage of economic problems, political problems and other problems in the statements of the group.

3. What political, economic and other issues are there in the

present campaign in Wisconsin?

4. Congress during the past session passed the following im-

portant measures. Which ones are largely economic in character ?

Joint Resolution for the relief of the destitute in Mexico.

Act to reduce tariff duties and to provide revenue.

Act providing legislation for Panama Exposition.

Act providing for free importation of articles for the Panama Exposition.

Act restricting the use of the injunction in labor disputes.

Act providing for the mediation, conciliation and arbitration of controversies between employers and employees.

Act relating to the carrying of dangerous articles on passenger steamers.

Act to reduce taxation to provide revenue for the government.

Act making appropriations for fortifications and works of defense.

Act relating to proof of signatures and handwriting in any process before a U. S. court.

Act divesting intoxicating liquors of their interstate character in certain cases.

Act making appropriations for the support of the army.

Act extending authority to receive certified checks drawn on National Banks, Trust Companies and State Banks in payment of duties on imports, and internal taxes and all public revenues.

Act relating to invalid pensions and accident insurance.

Act creating a department of labor.

Act making appropriations for naval service.

Act providing for the establishment of Federal Reserve Banks.

Act regulating the loaning of money on securities of persons, firms, and corporations.

Act relating to the limitation of hours of service of laborers and mechanics in employ of the government.

Act extending the power of the Commissioner General of Immigration.

Act providing for an enlarged homestead.