6o OUTLINES OF AGRICULTURAL ECONOMICS 



24. Are many forms of so-called renting contracts also contracts 

 for labor? Illustrate by Iowa bushel-renting and southern share- 

 cropping. 



25. May such a contract also be a contract for supervision or 

 entrepreneurship ? Illustrate by the stock-share lease. 



26. May it also be a contract for the use of capital-goods ? Give 

 several illustrations. 



27. Do the general propositions as to the play of supply and 

 demand forces in the making of prices hold good in the bargaining of 

 landlord and tenant ? 



28. Does the ordinary purchaser of farm land buy with a view 

 to the return which the land may be expected to yield ? Is it correct 

 to think of him as buying an income ? 



29. How much is an income of $500 a year worth ? How much 

 would you have to invest in farm-land bonds at par to get an income 

 of this amount ? in individual mortgages ? in a hardware and feed 

 business ? Are all these incomes equally sure year in and year out ? 

 Do they all involve the same amount of responsibility and labor of 

 superintendence on the part of the recipient ? 



30. Suppose that in a given community it has been usual to get 

 8 per cent on good first mortgages, and a change in rural credit 

 arrangements makes it possible to secure such loans at 5 per cent, is 

 it likely that persons who buy land will pay more or less under the 

 new conditions ? 



31. What would be meant by the statement that land value is the 

 " capitalization " of its economic rent? What is the capitalization of 

 a corporation ? 



32. In your home community does land actually sell for a sum 

 which capitalizes its earning power at the going rate for similar 

 investments ? 



33. Cite any conspicuous departure from this rule with which 

 you may be familiar. Can you explain it ? 



34. What is overcapitalization of a corporation? May land be 

 overcapitalized? Can you cite a good example and explain the 

 reasons ? 



35. What would be the difference between a speculative stock 

 and an investment stock? Is land a frequent object of speculative 

 activities? Why? What effect does this have on market values? 



36. Does speculation in land have any relation to the question of 

 tenancy ? Explain. 



37. What effect does the growth of urban centers have upon farm 

 values in the region, and why? improvement of transportation 



