|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. How long would it take for a broad-wheeled wagon, attended by two men, and drawn by eight horses, to carry four tons of goods between London and Edinburgh?
(a) Four weeks.
(b) Six weeks.
(c) Five weeks.
(d) Seven weeks.
2. To what price do all commodities gravitate?
(a) The effectual price.
(b) The natural price.
(c) The stated price.
(d) The nominal price.
3. In the ancient world, what was considered a most wonderful and dangerous exploit of navigation?
(a) To sail with a woman on board.
(b) To sail out of the Streights of Gibraltar.
(c) To sail down an unknown coast.
(d) To not invoke the gods' blessings on the journey.
4. What kind of person depends chiefly on the benevolence of this fellow citizens?
(a) A woman.
(b) A child.
(c) A beggar.
(d) An unemployed man.
5. What kind of capital is employed in the improvement of land and in the purchase of useful machines and instruments of trade?
(a) Instrumental capital.
(b) Improving capital.
(c) Circulating capital.
(d) Fixed capital.
6. How many general types of fixed capital are there?
7. How does an individual live within a civilized society?
(a) He needs the cooperation and assistance of many other people.
(b) His dependence or independence is entirely up to him.
(c) He needs the cooperation and assistance of only his friends.
(d) He is completely independent of other people.
8. How did the idea of division of labor come about?
(a) It was a consequence of the applied study of manufacturing.
(b) It was the propensity of human nature to truck, barter, and exchange one thing for another.
(c) It was an accident which resulted in positive change.
(d) It was an experiment which owners found to be advantageous.
9. What kind of rent comes to the landlord after deducting the expense of management, of repairs, and all other necessary charges?
(a) Net rent.
(b) Production rent.
(c) Consumption rent.
(d) Gross rent.
10. What was the original price, the first purchase cost, for all things?
(a) Exchange of goods.
11. What is the sole end and purpose both of the fixed and circulating capitals?
(a) To maintain and augment the stock which may be traded for needed goods.
(b) To maintain and augment the stock which may be sold for profit.
(c) To maintain and augment the stock which may be used to expand the business.
(d) To maintain and augment the stock which may be reserved for immediate consumption.
12. What three ways do we obtain from one another the greater part of those mutual good offices which we stand in need of?
(a) By labor, by charity, or by ingenuity.
(b) By ingenuity, by treaty, or by purchase.
(c) By labor, by barter , or by charity.
(d) By treaty, by barter, or by purchase.
13. According to the text, what does this saying describe: "Give me that which I want, and you shall have this which you want"?
(a) A business propostion.
(b) A mutual offer.
(c) A bargain.
(d) A fair trade.
14. What was the common instrument of commerce among the ancient Romans?
15. What is one characteristic of the Mediterranean Sea which made it favorable for infant navigation?
(a) No tides.
(b) No islands.
(c) Shallow water.
(d) Many harbors.
Short Answer Questions
1. What is another name for paper money?
2. What is a person's revenue equal to?
3. What is one characteristics of a fixed capital?
4. What kind of business does not lend itself to many subdivisions of labor?
5. Why are new machines more likely to be invented under division of labor?
This section contains 667 words
(approx. 3 pages at 300 words per page)