QUESTIONS ON THE TEXT

1. Is it correct to speak of a "capitalistic system"?

2. What is the chief economic function of government?

3. Name the four methods of getting a living. Which will be encouraged by a good government?

4. To what extent is the att.i.tude of a good government toward industry a negative one?

5. What is the relation of government to the inst.i.tution of private property?

6. What is the importance of laws requiring the enforcement of contracts?

7. Why is there compet.i.tion?

8. How does compet.i.tion tend to harmonize the interests of the individual with those of the community?

9. Why are diamonds high in price? Why is bread low in price?

10. What is the relation of capitalism to economic freedom?

11. What can be said as to the benefits of capitalism?

12. What are the chief defects of capitalism?

13. Outline the existing distribution of wealth.

14. On what two grounds does Professor Taussig account for this situation?

15. What facts should be borne in mind in attacking the problem of industrial reform?

REQUIRED READINGS

1. Williamson, _Readings in American Democracy_, chapter x.

Or all of the following:

2. Ely, _Outlines of Economics_, chapter ii.

3. Fetter, _Modern Economic Problems_, chapter ii.

4. Hobson, _Evolution of Modern Capitalism_, chapter i.

5. Seligman, _Principles of Economics_, chapter ix.

QUESTIONS ON THE REQUIRED READINGS

1. Define capitalism. (Hobson, page 1.)

2. How has the development of mines affected the growth of capitalism?

(Hobson, page 6.)

3. What is the relation of colonization to capitalism? (Hobson, pages 10-12.)

4. What is the relation of capitalism to a large labor supply?

(Hobson, pages 13-14.)

5. Define private property. (Ely, page 21.)

6. Discuss the theories of private property. (Fetter, pages 18-20.)

7. What were the earliest forms of private property? (Seligman, page 126.)

8. What was the effect of the domestication of animals upon the inst.i.tution of private property? (Seligman, pages 126-127.)

9. What are the limitations of private property? (Fetter, pages 20- 21.)

10. What is meant by the term "vested interests"? (Ely, pages 25-26.)

11. What is "fair" compet.i.tion? (Ely, pages 29-30.)

TOPICS FOR INVESTIGATION AND REPORT

I

1. Suppose an unscrupulous individual fraudulently secured possession of property belonging to you. What steps would you take to secure justice?

2. What penalties are inflicted in your state for highway robbery, embezzlement, theft, forgery, and similar crimes against property?

3. Suppose that you are a florist and that you have ordered a large quant.i.ty of flowers from a greenhouse keeper for your Decoration Day trade. a.s.sume that you could not sell the flowers at a profit if they arrived later than Decoration Day. a.s.sume, also, that you have reason to suspect that the greenhouse keeper will not be prompt in delivering the flowers ordered. Draw up a contract (to be signed by him) which would protect you against his tendency to carelessness.

4. Select for study an isolated rural district, a small town, or a section of a suburb in which the community secures its supply of a given commodity from a single shop or store. Compare the price of the commodity, and its quality, with the price and quality of a similar commodity in stores located in communities served by several competing stores. What do you conclude as to the value of compet.i.tion?

5. Make a study of bill-board advertising, listing the number of advertis.e.m.e.nts inviting purchase of competing commodities. Write to a bill-board advertising company for advertising rates, and draw your conclusions as to (_a_) the cost of advertising, and (_b_) the waste involved in advertising competing commodities.

Make a similar study of magazine advertising, writing to the advertising manager of the magazine selected for study, in order to secure advertising rates.

II

6. Relation of good government to economic prosperity. (Carver, _Elementary Economics_, chapter vii.)

7. Compet.i.tion. (Seligman, _Principles of Economics_, chapter x.)

8. Methods of struggling for existence. (Carver, _Elementary Economics_, page 40.)