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Table of Contents

Appendix II. Examination Questions.

show the bearing of the principle involved on the doctrine of “general

  1. Prove that the increase of capital and the extension of industry can not lead to a general over-production of commodities.
  1. What is the error of those who believe in the danger of over-production?
  1. Distinguish “excess of supply” from a “commercial crisis.”
  1. Give the substance of Mill's examination of the theories of excess of supply.
  1. “When production is fully equal to consumption, every discovery in the arts, or in mechanics, is a calamity, because it only adds to [pg 650] the enjoyment of consumers the opportunity of obtaining commodities at a cheaper rate, while it deprives the producers of even life itself.” Discuss this opinion of Sismondi.
  1. Explain the difference in the theories of Dr. Chalmers and Mr. Mill on over-production, and the excess of supply.

Peculiar Cases of Value.

  1. It costs as much to produce straw as to produce grain; how, then, do you explain the comparatively low value of straw?
  1. Suppose a considerable rise in the price of wool to be foreseen, how should farmers expect the prices of mutton to be affected, and why?
  1. Explain the operation of the laws of value by which the relative prices of wool and mutton are regulated.

International Trade and Values.

  1. What is the meaning of
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