[OPE-L:1517] Re: quiz

akliman@acl.nyit.edu (akliman@acl.nyit.edu)
Mon, 18 Mar 1996 11:46:50 -0800

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Answers to Riccardo's quiz questions:

A. Schumpeter. I think this is a "fair," i.e., accurate account.

B. Morishima. Unfair. Marx is determining not relative prices but money
prices, and the profit rate is determined *before* and independently of
output prices. Moreover, I think the real point of Ch. 9 of Vol. III was
not to give a unique determinate answer for prices of production (for
there cannot be a unique one unless input prices and the rate of profit
are given), but to illustrate the conservation of value and surplus-value
in exchange.

C. Baumol. Fair as explanation of a mathematical representation of the
process but not, of course, an account of the actual process.

D. Mirowski. Fair, though the substance metaphor is a bit misleading, and
value is not conserved in Marx's theory the way Mirowski contends, in my
view. It is conserved in exchange, created in production, destroyed through
consumption. But I think that when values change, the aggregate value of
capital can change without "going" anywhere, contrary to Mirowski.

E. Steedman. Unfair. C and V are not "derived" from data, they *are*
(some of) the data.

As far as sources go, perhaps

A. History of Economic Analysis?

B. Marx's Economics?

C. Baumol's reply to Samuelson in the _JEL_?

D. More Heat than Light

E. Marx after Sraffa

What don't I win?

When will winners be announced?

Why are you asking?

Here's a quiz of my own: Senior's Last Dollar.

3 men check into a hotel. The clerk, Nassau Senior, looks up the price,
$30. The men sign in. Each hands over a $10 bill, which Senior records.

Later, the manager looks over the books, and finds that Senior has over-
charged the men. The price is only $25. The manager takes 5 $1 bills out
of the cash register, and tells Senior to give them to the men.

Senior realizes that 3 men cannot split $5 evenly, so, on the way to the
room, he puts $2 in his pocket and gives the men $3, telling them the
price is really $27.

The men paid $30, but got back $3, so ended up paying $27. Senior has
$2 in his pocket. But $27 + $2 = $29. Where's Senior's Last Dollar?

(Hint: the answer has nothing to do with deviations of prices from values,
or with moral depreciation.)

Prize: the winner gets to answer more of Riccardo's and Simon's questions.

Andrew Kliman