XVII. PROFITS IN AGRICULTURE 



QUESTIONS 



i. Distinguish "pure" profits from other expressions in which the 

 term is used more loosely. 



2. What is meant by speaking of profits as the "residual" share 

 in the distributive process ? 



3. Does the ordinary farmer think of a distinction between his 

 labor return and something to be labeled " profits "? Why not? 

 Would it make his farm operations more intelligent if he did ? 



4. When extraordinary returns upon a farm enterprise are secured, 

 to what does the farmer ascribe the excess ? Is he correct in doing 

 so? Why? 



5. Is the amount of profits determined on the principle of price? 

 If so, what are the supply and demand factors involved ? 



6. Do pure profits accrue only to the owner (or controller) of 

 capital ? Explain carefully. 



7. Have farmers secured a special return profits as a result of 

 the European war ? Is this a chance profit ? Has it had any element 

 of foresight? If so, is it still profits? Is there any element of 

 monopoly gain? 



8. Is agriculture ordinarily a field for the creation of profits ? of 

 monopoly profits? Why? Is it possible to have some element of 

 monopoly gain in farming ? other than ownership of scarce natural 

 agents ? of unusual labor abilities ? 



9. Would it mean anything to say that profits are derived from 

 business enterprise solely and not from technical 'operations as such? 

 What is meant by enterprise or entrepreneurship ? 



10. Does business enterprise always entail risk ? Are losses, then, 

 a part of the general phenomenon of profits? May we call them 

 negative profits ? 



1 1 . Are the risks which attach to agriculture the sort which give 

 rise to profits ? Explain. 



12. Are farmers as a class inclined to be venturesome in 

 their business operations? Be extremely discriminating in your 

 answer. 



13. Does the willingness to assume risks benefit the one who does 

 so ? Temporarily or permanently ? 



14. Does it benefit the public ? Temporarily or permanently ? 



15. Can you show any relationship between profits and progress ? 



16. Does the evidence seem to show that American agriculture 

 keeps close to a no-profit basis ? If so, would this be a reason for 



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