9. Why is there more capital in the United States than in China although the population of China is three times as large? 10. If all payment of interest were forbidden by law, would people continue to save? If not, why does saving sometimes increase when the rate of interest goes down? 11. Why are each of the following paid a high or a low rate of remuneration as the case may be: (_a_) a locomotive engineer; (_b_) a hod carrier; (_c_) a movie actor; (_d_) a member of the state legislature; (_e_) a steeple jack; (_f_) a corporation lawyer? 12. To what different things may a fall in wages be due? A fall in profits? If all large production could be eliminated, would we be worse or better off? 13. If all men were of equal business ability and had the same opportunities, would there be any business profits? 14. What are the advantages of a corporation as compared with a partnership? 15. In what ways is democracy likely to enhance production to a greater degree than despotism? 16. Can you think of something possessing value but not utility? Utility but not value? Both value and utility but having no price? 17. What is meant by the saying that “competition is the life of trade”? 18. Make a list of all the natural monopolies that you can remember. How may the evils of legal and artificial monopolies be lessened? 19. How is freedom of contract related to the institution of private property? Do you think you would look forward to greater or less happiness in life if all private property were now to be abolished? 20. Which of the following are proper limitations on the freedom of contract or the right of private property: (_a_) a rule that billboards must not be built of wood; (_b_) a provision that no one shall buy or sell explosives without a license; (_c_) a regulation that no owner of a city lot shall build on it any building costing less than ten thousand dollars; (_d_) a requirement that no one sell cigarettes to persons under sixteen years of age? Topics for Debate 1. Labor contributes more than management to national prosperity. 2. High prices are an advantage (or a disadvantage) to the workers of the United States. 3. Every earner of income should be required to save a certain portion of his earnings each year, thus making all men capitalists as well as workers. CHAPTER IV THE NATURE AND FORMS OF GOVERNMENT _The purpose of this chapter is to explain what government is, how it originated, why people obey it, and what its functions are._ [Sidenote: Various uses of the word “state”.]