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This quiz consists of 5 multiple choice and 5 short answer questions through Book 2, Chapter 5.

Multiple Choice Questions

1. What encourages every man to apply himself to an occupation and cultivate whatever talent he may possess for that particular business?
(a) The hope that his expertise will allow him to excel in even greater endeavors.
(b) The knowledge that his productive life enriches the lives of others.
(c) The knowledge that his surplus of production can be exchanged for something he needs.
(d) The desire that the knowledge of his occupation will be passed down to his sons and grandsons.

2. How many general types of circulating capital are there?
(a) Two.
(b) Three.
(c) Four.
(d) Five.

3. Where do a farmer's or manufacturer's profits come from?
(a) From their reserve.
(b) From their surplus.
(c) From their stock.
(d) From what they produce.

4. Who are most likely to make improvements upon or invent new machines for manufacture?
(a) The man who is responsible for the running of the manufacturing process.
(b) Those who work with or make the machines.
(c) The man who repairs and cleans the machines.
(d) The owner of the manufacturing process.

5. In the ancient world, what was considered a most wonderful and dangerous exploit of navigation?
(a) To sail out of the Streights of Gibraltar.
(b) To sail with a woman on board.
(c) To sail down an unknown coast.
(d) To not invoke the gods' blessings on the journey.

Short Answer Questions

1. How does annual consumption compare to annual spending?

2. What kind of business does not lend itself to many subdivisions of labor?

3. What does the lender consider stock lent at an interest?

4. Where are the separation of different trades and employments from one another generally found?

5. What happens if the supply of a commodity is greater than the demand for it?

(see the answer key)

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