September 1, 1987

LEAD: Most of the members of the Union of Radical Political Economics, which represents the nation's Marxist economists, are young college professors and graduate students. But a few old-timers from the 40's and 50's showed up last week at the organization's annual summer conference, and when one rose from the audience to call for arming the proletariat, there was an embarrassed silence.

LEAD: Governor Cuomo and Mayor Koch agreed yesterday on a proposal to spend $600 million from the Municipal Assistance Corporation to help finance a major school building program in New York City.

LEAD: The Government's effort to relocate a monumental sculpture from Federal Plaza in lower Manhattan does not violate the artist's constitutional rights, a Federal judge said yesterday as he dismissed the artist's lawsuit against the General Services Administration.

LEAD: The United States, which has portrayed Iran as the main aggressor in the Persian Gulf war, has strongly protested Iraq's renewed attacks on Iranian targets, State Department officials said today.

LEAD: ONE of the most paradoxical of human behaviors, the tendency to sabotage one's own success, has come under intense new scrutiny as psychologists and psychiatrists increasingly see self-defeating habits as an indication of severe emotional trouble.