|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. What are the three original sources of all revenue?
(a) Trade, taxes, and wages.
(b) Commerce, taxes, and trade.
(c) Wages, profit, and rent.
(d) Profit, taxes, and commerce.
2. Why are new machines more likely to be invented under division of labor?
(a) Men are more likely to discover more efficient methods of production when their entire focus is directed towards a single step of the process.
(b) Men have more time to experiment with various options and potential improvements.
(c) Division of labor promotes speculation and new ideas to be tried.
(d) New machines are required when labor has been divided.
3. What reduced the value of gold and silver in Europe in the 16th century?
(a) The discovery of mines in America.
(b) The depletion of mines in Europe.
(c) The discovery of mines in Peru.
(d) The depletion of mines in America.
4. What is the common instrument of commerce and exchanges in some parts of the coast of India?
5. Which country's inland navigation caused its early improvement?
6. Commonly, why does man #1 help man #2?
(a) Because man #1 sees man #2's genuine need for help.
(b) Because man #1 derives personal benefit from helping man #2.
(c) Because man #1 has a capacity for benevolence.
(d) Because man #2 has agreed to pay man #1.
7. In what country is the Ganges River?
8. The ordinary or average rates of wages, profit, and rent may also be called what?
(a) The commodity rates.
(b) The natural rates.
(c) The derived rates.
(d) The common rates.
9. 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 treaty, by barter, or by purchase.
(d) By labor, by barter , or by charity.
10. What is the intention of the fixed capital?
(a) To increase the productive powers of labour.
(b) To increase the speed of manufacturing.
(c) To decrease the number of workmen needed.
(d) To decrease the overhead cost of manufacturing.
11. What is the common instrument of commerce and exchanges in Abyssinia?
12. What is the only universal, only accurate measure of value, only standard by which we can compare the values of different commodities at all times and at all places?
(b) Gem stones.
13. How are the dispositions that form the difference of talents of various professions considered?
(a) They are considered inconsequential.
(b) They are considered a hindrance to progress.
(c) They are considered useful.
(d) They are considered obstacles to overcome.
14. Which Mediterranean country seems to have been the first in which either agriculture or manufacturers were cultivated and improved to any considerable degree?
15. What is a person's revenue equal to?
(a) The wages he is paid.
(b) The stock that is put into reserve.
(c) The money left over after buying his necessities.
(d) The quantity of comsumable goods he can purchase.
Short Answer Questions
1. What kind of rent comes to the landlord after deducting the expense of management, of repairs, and all other necessary charges?
2. What kind of revenue constitutes the whole annual produce of the a country's land and labor?
3. How are a philosopher and a street porter the same?
4. What was one problem with the use of rude metals?
5. In all countries, what do men prefer in exchange for commodities?
This section contains 606 words
(approx. 3 pages at 300 words per page)