|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. Under what circumstance would every man have to perform exactly the same duties and do exactly the same work?
(a) If there were no difference of talent.
(b) If there were no organized society.
(c) If there were no truck, barter, and exchange.
(d) If there were no manufacturers of commodities.
2. What is capital?
(a) Stock which a man consumes.
(b) Stock from which revenue is expected.
(c) Stock reserved for future needs.
(d) Stock traded for other goods.
3. By the nature of things, what must there be before the division of labor in a particular job?
(a) The accumulation of stock.
(b) The distribution of goods.
(c) The acquistion of capital.
(d) The training of workmen.
4. What is the intention of the fixed capital?
(a) To increase the productive powers of labour.
(b) To decrease the overhead cost of manufacturing.
(c) To increase the speed of manufacturing.
(d) To decrease the number of workmen needed.
5. What is one consequence for society where the division of labor is practiced?
(a) There is no unemployment.
(b) All men are capable of learning a new trade.
(c) Manufacturing is always growing.
(d) Wealth is enjoyed by even the lowest classes of people.
6. What kind of person depends chiefly on the benevolence of this fellow citizens?
(a) A woman.
(b) An unemployed man.
(c) A child.
(d) A beggar.
7. What is the ultimate and real standard by which the value of all commodities can, at all times and places, be estimated and compared?
8. In every occupation, what is the general proportion between circulating and fixed capital?
(a) There is always more circulating capital.
(b) They are varyingly very different.
(c) They are always equal.
(d) There is always more fixed capital.
9. What is another name for paper money?
(a) Circulating notes.
(b) Promissory notes.
(c) Debtors' notes.
(d) Commerce notes.
10. What can be said for division of labor for all kinds of manufacturing?
(a) Many individuals and processes come together to complete a product.
(b) Division of labor does not affect the quantity of products manufactured.
(c) The quality of products manufactured are improved greatly.
(d) Machines replace many workmen who are moved to other jobs.
11. What is the common instrument of commerce and exchanges in Abyssinia?
12. What kind of revenue constitutes the whole annual produce of the a country's land and labor?
(a) Production revenue.
(b) Consumption revenue.
(c) Gross revenue.
(d) Net revenue.
13. What does the author consider to be a wasteful use of gold?
(a) Picture frames.
(b) Gilding and plating.
14. What is true about the amount of metal coins which circulate in a society?
(a) They are equal to the revenue of the society.
(b) They can never be equal to the revenue of the society.
(c) They fluctuate the revenue of the society.
(d) They have no relation to the revenue of the society.
15. What kind of rent is paid by a farmer?
(a) Gross rent.
(b) Net rent.
(c) Consumption rent.
(d) Production rent.
Short Answer Questions
1. In the rude ages of society, what was the common instrument of commerce?
2. What kind of demand brings a commodity to market?
3. In all countries, what do men prefer in exchange for commodities?
4. Which commodity is more susceptible to price variations?
5. Under division of labor, what generally supplies a man's wants?
This section contains 560 words
(approx. 2 pages at 300 words per page)