|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. What is the real price of a thing a person wants?
(a) The money it takes to purchase it.
(b) The price marked as its cost.
(c) The labor it takes to pay for it.
(d) The toil and trouble of acquiring it.
2. What encourages every man to apply himself to an occupation and cultivate whatever talent he may possess for that particular business?
(a) The hope that his expertise will allow him to excel in even greater endeavors.
(b) The knowledge that his surplus of production can be exchanged for something he needs.
(c) The knowledge that his productive life enriches the lives of others.
(d) The desire that the knowledge of his occupation will be passed down to his sons and grandsons.
3. What happens in every country that employs an increase in stock?
(a) The same quantity of industry produces a greater quantity of work.
(b) The greater quantity of industry produces a greater quantity of work.
(c) The same quantity of industry produces a lesser quantity of work.
(d) The lesser quantity of industry produces produces a greater quantity of work.
4. How are the dispositions that form the difference of talents of various professions considered?
(a) They are considered a hindrance to progress.
(b) They are considered obstacles to overcome.
(c) They are considered inconsequential.
(d) They are considered useful.
5. What is the nominal price of a commodity?
(a) The net profit for the seller.
(b) The labor it took to produce it.
(c) The price of its raw materials.
(d) The price asked for it.
6. What is the actual price at which any commodity is commonly sold called?
(a) The prime price.
(b) The derived price.
(c) The market price.
(d) The asking price.
7. What does the division of labor do for a manufacturer?
(a) It simplifies the productive powers of labor.
(b) It complicates the productive powers of labor.
(c) It increases the productive powers of labor.
(d) It decreases the productive powers of labor.
8. What is the common instrument of commerce and exchanges in Virginia?
9. In some measure, every man in a growing commercial society becomes what?
(a) A farmer.
(b) A merchant.
(c) A tinker.
(d) A scholar.
10. The laborer is rich or poor, is well or ill rewarded, in proportion to what?
(a) The real price of his labor.
(b) The real price of his purchases.
(c) The nominal price of his labor.
(d) The nominal price of his purchases.
11. What does the text say about the difference of the natural talents in men?
(a) That they are so different as so never to be changeable.
(b) That they are not really that different.
(c) That talent is natural and cannot be cultivated or improved.
(d) That all men have unique talents unto themselves.
12. Who are most likely to make improvements upon or invent new machines for manufacture?
(a) The man who is responsible for the running of the manufacturing process.
(b) Those who work with or make the machines.
(c) The owner of the manufacturing process.
(d) The man who repairs and cleans the machines.
13. What becomes the common instrument of commerce when barter ceases?
(c) Gem stones.
14. 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) Five weeks.
(b) Four weeks.
(c) Seven weeks.
(d) Six weeks.
15. What is the sole end and purpose both of the fixed and circulating capitals?
(a) To maintain and augment the stock which may be reserved for immediate consumption.
(b) To maintain and augment the stock which may be used to expand the business.
(c) To maintain and augment the stock which may be traded for needed goods.
(d) To maintain and augment the stock which may be sold for profit.
Short Answer Questions
1. The ordinary or average rates of wages, profit, and rent may also be called what?
2. What three ways do we obtain from one another the greater part of those mutual good offices which we stand in need of?
3. What word expressed the weight or quantity of metal contained in the first coins?
4. What are the three original sources of all revenue?
5. What is the real measure of the exchangeable value of all commodities?
This section contains 730 words
(approx. 3 pages at 300 words per page)