|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. In the ancient world, what was considered a most wonderful and dangerous exploit of navigation?
(a) To not invoke the gods' blessings on the journey.
(b) To sail out of the Streights of Gibraltar.
(c) To sail with a woman on board.
(d) To sail down an unknown coast.
2. What reduced the value of gold and silver in Europe in the 16th century?
(a) The discovery of mines in Peru.
(b) The discovery of mines in America.
(c) The depletion of mines in America.
(d) The depletion of mines in Europe.
3. How many times more goods on a broad-wheeled wagon can be carried from London to Edinburgh by water-carriage in the same amount of time?
4. Under division of labor, what generally supplies a man's wants?
(a) The produce of society's labor.
(b) The produce of a man's own labor.
(c) The produce of other men's labor.
(d) The produce of the country's labor.
5. 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) Six weeks.
(b) Five weeks.
(c) Four weeks.
(d) Seven weeks.
6. When was the Bank of England incorporated?
(a) The 27th of July, 1696.
(b) The 27th of July, 1694.
(c) The 27th of July, 1693.
(d) The 27th of July, 1695.
7. 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 fair trade.
(c) A bargain.
(d) A mutual offer.
8. How does an individual live within a civilized society?
(a) His dependence or independence is entirely up to him.
(b) He needs the cooperation and assistance of many other people.
(c) He is completely independent of other people.
(d) He needs the cooperation and assistance of only his friends.
9. In all countries, what do men prefer in exchange for commodities?
(b) Like goods.
(c) Gem stones.
(d) Precious metals.
10. What was the original form of the metals used for commerce?
11. Why are new machines more likely to be invented under division of labor?
(a) New machines are required when labor has been divided.
(b) Men are more likely to discover more efficient methods of production when their entire focus is directed towards a single step of the process.
(c) Men have more time to experiment with various options and potential improvements.
(d) Division of labor promotes speculation and new ideas to be tried.
12. Which Mediterranean country seems to have been the first in which either agriculture or manufacturers were cultivated and improved to any considerable degree?
13. What commodity would a butcher be unlikely to exchange for?
14. What kind of business does not lend itself to many subdivisions of labor?
(a) Ship building.
(b) Textile manufacturing.
15. By the nature of things, what must there be before the division of labor in a particular job?
(a) The acquistion of capital.
(b) The accumulation of stock.
(c) The distribution of goods.
(d) The training of workmen.
Short Answer Questions
1. How many general types of fixed capital are there?
2. The laborer is rich or poor, is well or ill rewarded, in proportion to what?
3. Under what circumstance would every man have to perform exactly the same duties and do exactly the same work?
4. What kind of demand brings a commodity to market?
5. What is the nominal price of a commodity?
This section contains 627 words
(approx. 3 pages at 300 words per page)