|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. To what price do all commodities gravitate?
(a) The nominal price.
(b) The effectual price.
(c) The stated price.
(d) The natural price.
2. How are a philosopher and a street porter the same?
(a) Their goals for life would be very similar.
(b) Their desire and motivations would be very similar.
(c) Their first six years of life would have been very similar.
(d) Their family life would be very similar.
3. Which Mediterranean country seems to have been the first in which either agriculture or manufacturers were cultivated and improved to any considerable degree?
4. What was the original price, the first purchase cost, for all things?
(b) Exchange of goods.
5. What kind of revenue constitutes the whole annual produce of the a country's land and labor?
(a) Consumption revenue.
(b) Net revenue.
(c) Production revenue.
(d) Gross revenue.
6. 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 manufacturers of commodities.
(c) If there were no truck, barter, and exchange.
(d) If there were no organized society.
7. What is the real price of a thing a person wants?
(a) The toil and trouble of acquiring it.
(b) The money it takes to purchase it.
(c) The labor it takes to pay for it.
(d) The price marked as its cost.
8. Labor measures the value of price which resolves itself into labor, rent, and what one other thing?
9. In all countries, what do men prefer in exchange for commodities?
(a) Gem stones.
(b) Precious metals.
(d) Like goods.
10. 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 have no relation to the revenue of the society.
(c) They fluctuate the revenue of the society.
(d) They can never be equal to the revenue of the society.
11. What becomes the common instrument of commerce when barter ceases?
(b) Gem stones.
12. What is a person's revenue equal to?
(a) The quantity of comsumable goods he can purchase.
(b) The stock that is put into reserve.
(c) The wages he is paid.
(d) The money left over after buying his necessities.
13. What is one characteristics of a fixed capital?
(a) It always changes masters.
(b) It has no real master.
(c) It goes back and forth between masters.
(d) It never changes masters.
14. What is the intention of the fixed capital?
(a) To increase the speed of manufacturing.
(b) To increase the productive powers of labour.
(c) To decrease the number of workmen needed.
(d) To decrease the overhead cost of manufacturing.
15. What word expressed the weight or quantity of metal contained in the first coins?
Short Answer Questions
1. A part of which area was included in ancient Scythia?
2. What does the division of labor do for individual workmen?
3. According to Homer, how much did the armor of Diomede cost?
4. What kind of commodity must be sold quickly?
5. Why are new machines more likely to be invented under division of labor?
This section contains 609 words
(approx. 3 pages at 300 words per page)