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This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. What kind of demand brings a commodity to market?
(a) A natural demand.
(b) A proportionate demand.
(c) An absolute demand.
(d) An effectual demand.

2. Under what circumstance would every man have to perform exactly the same duties and do exactly the same work?
(a) If there were no manufacturers of commodities.
(b) If there were no organized society.
(c) If there were no difference of talent.
(d) If there were no truck, barter, and exchange.

3. What happens in every country that employs an increase in stock?
(a) The lesser quantity of industry produces produces a greater quantity of work.
(b) The same quantity of industry produces a lesser quantity of work.
(c) The same quantity of industry produces a greater quantity of work.
(d) The greater quantity of industry produces a greater quantity of work.

4. What is one characteristics of a fixed capital?
(a) It never changes masters.
(b) It always changes masters.
(c) It has no real master.
(d) It goes back and forth between masters.

5. In what country is the Ganges River?
(a) Bengal.
(b) Italy.
(c) Egypt.
(d) India.

6. Which is not a reason for the increase of the quantity of work under division of labor?
(a) Time efficiencies.
(b) The employment of more workmen.
(c) The increase of the workmen's dexterity.
(d) The invention of machines which enable one man to do the work of many.

7. What is another name for paper money?
(a) Debtors' notes.
(b) Circulating notes.
(c) Commerce notes.
(d) Promissory notes.

8. What is one characteristic of the Mediterranean Sea which made it favorable for infant navigation?
(a) Shallow water.
(b) No islands.
(c) No tides.
(d) Many harbors.

9. What is it called when gold purchases goods in one foreign country in order to supply the consumption of another?
(a) Consumption trade.
(b) Domestic revenue trade.
(c) Foreign purchase trade.
(d) Carrying trade.

10. Which occupation requires a great town?
(a) Butcher.
(b) Farmer.
(c) Sailor.
(d) Poet.

11. What limits the extent of the division of labor?
(a) The population.
(b) The raw products.
(c) The market.
(d) The workmen.

12. What is the real measure of the exchangeable value of all commodities?
(a) Exchange of goods.
(b) Labor.
(c) Gold.
(d) Barter.

13. What is capital?
(a) Stock from which revenue is expected.
(b) Stock which a man consumes.
(c) Stock traded for other goods.
(d) Stock reserved for future needs.

14. In the rude ages of society, what was the common instrument of commerce?
(a) Food stuffs.
(b) Textiles.
(c) Cattle.
(d) Labor.

15. When was the Bank of England incorporated?
(a) The 27th of July, 1693.
(b) The 27th of July, 1696.
(c) The 27th of July, 1695.
(d) The 27th of July, 1694.

Short Answer Questions

1. Which country's inland navigation caused its early improvement?

2. What was one problem with the use of rude metals?

3. What kind of person depends chiefly on the benevolence of this fellow citizens?

4. What reduced the value of gold and silver in Europe in the 16th century?

5. Who are most likely to make improvements upon or invent new machines for manufacture?

(see the answer keys)

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