1. Compare the economic effects of defraying war expenditure (1) by loans, (2) by increased taxation.

2. How is it that the price of land falls as the rate of interest rises?

3. Does the incidence of rates on railways fall on the shareholders or the travelling public ?

4. What has been the influence of the gold discoveries on the economic condition of Australia?

5. Explain the following terms-market price, effectual demand, stock, rude produce, productiveness, national credit, the margin of cultivation.

6. State the objections to a double standard.

7. In the Eastern States (U.S.) iron-moulders earn from 14 to 17 dollars a week, in California their wages run from 21 to 27 dollars. Account for this variation.

8. How far is the amount of money in circulation an indication of the wealth of a country?

9. Explain and illustrate the propositions :

(1) That between two trading countries the profit of each is in an inverse ratio to the demand for imported goods.

(2) That profits do not depend on prices nor on purchase and sale.

(3) That profits tend generally to an equality.

10. In England the greater part of the land is the property of a few rich men. How has this come about, and what economic objections have been brought against such a condition of things?

Political Economy. II.

1. Define capital, fixed capital, national capital.

2. Examine the chief causes which determine the price of diamonds.

3. Explain the provisions of the Bank Charter Act? What has been its practical operation, and what objections have been brought against it?

4. What are the disadvantages incident to (1) the Octroi system (2) the imposition of ad valorem duties?

5. Comment on the following statements of Adam Smith:

Labour is the real measure of the value of silver.

Every improvement in the circumstances of Society tends either directly or indirectly to raise the real rent of land.

Great nations are never impoverished by private prodigality.

High profits tend more to raise the price of work than high wages.

6. How far and with what results have the principles of co-operation been applied to Banking?

7. What are the objections to the undertaking (1) of works of public utility, or (2) of colonisation by the State?

8. Give some account of the working of the Metayer system in France and Italy.

9. Is it true that (1) international trade is less advantageous to a rich than a poor country; (2) there can never be a general over-supply of commodities?

Give reasons for your answer.

10. How do increased means of internal and international communications affect a country?