How to Pass Examinations in Economics - 經濟

In preparing for an examinations in economics, it is desirable to study

the economy for years and thus acquie a feel for the facts. See how realistic

insight helps on this one:


7. If a tax of three cent per unit is imposed on the product of a

perfectly competitive industry, the price will rise bt exactly three

cents.(Answer: F)*4


The statement is false for three reasons" there are no perfectly

competitive industries; if there were, they would not be constant-cost

industry; and if there were, they wouldn't raise the price of a locomotive by

just three cents.


Lesson 4: Know Your Economy



Even a good student will sometimes overlook a section of the economy or

the textbook. Even so, formal logic may come to his rescue:


10. Although therotically, the control of a corporation is vested in all

its owners, in actual fact the control of most corporations rests with

their elected directors.(Answer: T)*5


Remember page58: "Theory and practice should not contradict one another."

So if in theory thw owners controls the corporation, then in fact they do; if

in fact the directors control the corporations, then in theory they do. Hence,

owners and directors are identical. Once we know this, the answer follows

directly.

Lesson 5 : Know Your Logic.



*4: Ibid., p.63.


*5: Ibid., p.11 Tarshis or Tarshis and Cartweight, are probably the only

economists who have studied the distribution of control in hundreds and

thausands of corporations. T or F?
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