|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. 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 greater quantity of industry produces a greater quantity of work.
(d) The same quantity of industry produces a greater quantity of work.
2. 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.
3. Under division of labor, what generally supplies a man's wants?
(a) The produce of other men's labor.
(b) The produce of society's labor.
(c) The produce of the country's labor.
(d) The produce of a man's own labor.
4. 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 difference of talent.
(c) If there were no truck, barter, and exchange.
(d) If there were no organized society.
5. Who are most likely to make improvements upon or invent new machines for manufacture?
(a) The man who repairs and cleans the machines.
(b) The owner of the manufacturing process.
(c) Those who work with or make the machines.
(d) The man who is responsible for the running of the manufacturing process.
6. What does the author consider to be a wasteful use of gold?
(a) Picture frames.
(b) Gilding and plating.
7. What becomes the common instrument of commerce when barter ceases?
(b) Gem stones.
8. What kind of capital is employed in raising, manufacturing, or purchasing goods, and selling them again with a profit?
(a) Fixed capital.
(b) Improving capital.
(c) Instrumental capital.
(d) Circulating capital.
9. What kind of demand brings a commodity to market?
(a) An absolute demand.
(b) An effectual demand.
(c) A natural demand.
(d) A proportionate demand.
10. How did the idea of division of labor come about?
(a) It was the propensity of human nature to truck, barter, and exchange one thing for another.
(b) It was a consequence of the applied study of manufacturing.
(c) It was an experiment which owners found to be advantageous.
(d) It was an accident which resulted in positive change.
11. What is true about the amount of metal coins which circulate in a society?
(a) They have no relation to the revenue of the society.
(b) They can never be equal to the revenue of the society.
(c) They are equal to the revenue of the society.
(d) They fluctuate the revenue of the society.
12. What is a consequence of replacing gold money with paper money?
(a) It promotes a new industry.
(b) It allows for increased wages.
(c) It allows for more buying power.
(d) It costs less both to erect and to maintain.
13. In some measure, every man in a growing commercial society becomes what?
(a) A farmer.
(b) A merchant.
(c) A scholar.
(d) A tinker.
14. What was the original price, the first purchase cost, for all things?
(c) Exchange of goods.
15. What kind of rent is paid by a farmer?
(a) Consumption rent.
(b) Net rent.
(c) Gross rent.
(d) Production rent.
Short Answer Questions
1. What kind of capital is employed in the improvement of land and in the purchase of useful machines and instruments of trade?
2. What word expressed the weight or quantity of metal contained in the first coins?
3. What limits the extent of the division of labor?
4. What three ways do we obtain from one another the greater part of those mutual good offices which we stand in need of?
5. What is capital?
This section contains 640 words
(approx. 3 pages at 300 words per page)