|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. What kind of capital is employed in the improvement of land and in the purchase of useful machines and instruments of trade?
(a) Improving capital.
(b) Fixed capital.
(c) Circulating capital.
(d) Instrumental capital.
2. What year was the Bank of England allowed to enlarge its capital stock?
3. According to Homer, how much did the armor of Diomede cost?
(a) Eleven oxen.
(b) Eight oxen.
(c) Nine oxen.
(d) Ten oxen.
4. What three ways do we obtain from one another the greater part of those mutual good offices which we stand in need of?
(a) By labor, by barter , or by charity.
(b) By ingenuity, by treaty, or by purchase.
(c) By labor, by charity, or by ingenuity.
(d) By treaty, by barter, or by purchase.
5. What is the actual price at which any commodity is commonly sold called?
(a) The market price.
(b) The prime price.
(c) The asking price.
(d) The derived price.
6. What does the division of labor do for a manufacturer?
(a) It simplifies the productive powers of labor.
(b) It decreases the productive powers of labor.
(c) It increases the productive powers of labor.
(d) It complicates the productive powers of labor.
7. Which Mediterranean country seems to have been the first in which either agriculture or manufacturers were cultivated and improved to any considerable degree?
8. What happens when the demand of a commodity is larger than the supply?
(a) The price rises.
(b) More goods are brought in.
(c) The price falls.
(d) The commodity is sold out.
9. What is the real measure of the exchangeable value of all commodities?
(b) Exchange of goods.
10. In every occupation, what is the general proportion between circulating and fixed capital?
(a) There is always more fixed capital.
(b) They are varyingly very different.
(c) They are always equal.
(d) There is always more circulating capital.
11. Originally, what did sailors fear?
(a) Being out of sight of the shore.
(b) Navigating on a cloudy night.
(c) That their compasses were inaccurate.
(d) That islands moved around in the sea.
12. In all countries, what do men prefer in exchange for commodities?
(a) Precious metals.
(b) Gem stones.
(d) Like goods.
13. What is the common instrument of commerce and exchanges in some parts of the coast of India?
14. What is the only universal, only accurate measure of value, only standard by which we can compare the values of different commodities at all times and at all places?
(c) Gem stones.
15. What is capital?
(a) Stock reserved for future needs.
(b) Stock traded for other goods.
(c) Stock from which revenue is expected.
(d) Stock which a man consumes.
Short Answer Questions
1. Why are new machines more likely to be invented under division of labor?
2. What kind of revenue is made from the interest on money?
3. What is the nominal price of a commodity?
4. Who are most likely to make improvements upon or invent new machines for manufacture?
5. What is the common instrument of commerce and exchanges in Abyssinia?
This section contains 593 words
(approx. 2 pages at 300 words per page)