ECON 338
MID TERM EXAM
Malcolm Rutherford Spring 2001
Time Allowed: 50 mins.
Answer ANY TWO of the following questions
1. Give a brief explanation of each of the following:
(a) Gossen's "first law of demand" and its implications.
(b) Bohm Bawerk's three reasons for interest.
(c) Menger's concept of an economic good.
(d) Marshall's "representative firm."
2. Explain what is meant by the "marginal revolution" in economics. Discuss the various
reasons that might have prompted this transformation in economics.
3. Outline Jevons' theory of exchange value and compare his treatment with that provided by
Walras.
4. Complete both parts:
(a) What contributions to the theory of production were made by Edgeworth and
Wicksteed?
(b) Explain and evaluate J. B. Clark's marginal productivity theory of distribution.
5. Explain Marshall's notions of internal and external economies. What gave rise to internal
economies of scale and what limited the size of firms? What did Marshall think produced
external economies and why did he the existence of an external economy justified a
subsidy?
END