|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. What is a person's revenue equal to?
(a) The stock that is put into reserve.
(b) The money left over after buying his necessities.
(c) The quantity of comsumable goods he can purchase.
(d) The wages he is paid.
2. What becomes the common instrument of commerce when barter ceases?
(c) Gem stones.
3. A part of which area was included in ancient Scythia?
4. What is the actual price at which any commodity is commonly sold called?
(a) The asking price.
(b) The derived price.
(c) The prime price.
(d) The market price.
5. In every occupation, what is the general proportion between circulating and fixed capital?
(a) There is always more circulating capital.
(b) There is always more fixed capital.
(c) They are varyingly very different.
(d) They are always equal.
6. Which occupation requires a great town?
7. Why are the silks of France better and cheaper than those of England?
(a) Because silk manufacturing is not popular in England.
(b) Because there is little demand for English silk.
(c) Because silk manufacturing is not as well suited to the climate of England as it is to that of France.
(d) Because France has an extreme surplus of silk manufacturers.
8. What was the original price, the first purchase cost, for all things?
(c) Exchange of goods.
9. What is a common characteristic for a workman under division of labor?
(a) Every workman has the means to improve himself.
(b) Every workman is equal to every other workman.
(c) Every workman has increased purchasing power.
(d) Every workman produces more than he needs.
10. The ordinary or average rates of wages, profit, and rent may also be called what?
(a) The natural rates.
(b) The derived rates.
(c) The common rates.
(d) The commodity rates.
11. What is the intention of the fixed capital?
(a) To decrease the number of workmen needed.
(b) To decrease the overhead cost of manufacturing.
(c) To increase the speed of manufacturing.
(d) To increase the productive powers of labour.
12. What kind of rent is paid by a farmer?
(a) Consumption rent.
(b) Gross rent.
(c) Production rent.
(d) Net rent.
13. What happens when the demand of a commodity is larger than the supply?
(a) The price rises.
(b) The price falls.
(c) More goods are brought in.
(d) The commodity is sold out.
14. What is a consequence of replacing gold money with paper money?
(a) It costs less both to erect and to maintain.
(b) It allows for increased wages.
(c) It allows for more buying power.
(d) It promotes a new industry.
15. What is one characteristic of the Mediterranean Sea which made it favorable for infant navigation?
(a) No islands.
(b) No tides.
(c) Shallow water.
(d) Many harbors.
Short Answer Questions
1. Which commodity is more susceptible to price variations?
2. How many general types of fixed capital are there?
3. In all countries, what do men prefer in exchange for commodities?
4. What is true about the amount of metal coins which circulate in a society?
5. What was the common instrument of commerce among the ancient Romans?
This section contains 526 words
(approx. 2 pages at 300 words per page)