II. CONSUMPTION 



QUESTIONS 



i. Is there any logical reason for placing the discussion of con- 

 sumption first in our study of the divisions of economics? What 

 relation does it bear to the subject of production ? 



2. Some writers have put this division last. What reasons could 

 be advanced for doing so ? 



3. Does the character of our consumption rest upon physiological, 

 psychological, or social considerations ? Are these mutually exclusive ? 



4. Is the aim of our consumption to secure maximum enjoyment, 

 personal well-being, or social welfare ? 



5. To what may we look for guidance in these endeavors? Is 

 the problem purely one of economics ? 



6. What is the law of diminishing utility? What qualifications 

 must be emphasized in stating it ? Does its general principle seem 

 valid in your own case ? 



7. Show how the law of variety operates in your personal satis- 

 faction of desires. Could you formulate a rule to cover the method 

 by which one could secure the maximum return from each dollar 

 spent for consumption goods ? 



8. Could such a rule be called rational consumption or an "eco- 

 nomic order of consumption"? Do some persons govern their con- 

 sumption after such a plan ? Do many ? Why ? 



9. Might such a plan be carried out by each individual without 

 producing the most advantageous results for society as a whole? 

 How? 



10. Explain the "law of least social cost." Is it particularly sig- 

 nificant in connection with agriculture ? Why ? 



. n. Does the fact that human wants expand beyond existing 

 means of satisfying them have favorable consequences? Does it 

 lead to progress ? How ? Necessarily ? 



12. What is meant by the "dynamics of wealth"? Can you 

 show its relation to the standard of living ? 



13. Have Americans prided themselves upon having a high stand- 

 ard of living? In what sense has it been "high"? What results 

 have followed? 



14. Does the character of agriculture reflect the character of 

 public consumption? 



15. Does such response to consumers' demands sometimes bring 

 unfortunate consequences? Do these ills fall upon the agricultural 

 industry or upon society as a whole ? 



