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This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. What is a consequence of replacing gold money with paper money?
(a) It allows for more buying power.
(b) It allows for increased wages.
(c) It promotes a new industry.
(d) It costs less both to erect and to maintain.
2. What is capital?
(a) Stock which a man consumes.
(b) Stock traded for other goods.
(c) Stock reserved for future needs.
(d) Stock from which revenue is expected.
3. What does the division of labor do for individual workmen?
(a) It enables each man to work fewer hours.
(b) It teaches each man a new skill.
(c) It reduces every man's job to one simple operation.
(d) It gives each man more work to do.
4. What causes the difference between a philosopher and a street porter?
(a) Opportunity, talent, and birth.
(b) Habit, custom, and education.
(c) Birth, income, and upbringing.
(d) Natural talent and propensity.
5. What is the common instrument of commerce and exchanges in Abyssinia?
6. What was the common instrument of commerce among the ancient Romans?
7. Which commodity is more susceptible to price variations?
8. What is the nominal price of a commodity?
(a) The price asked for it.
(b) The net profit for the seller.
(c) The labor it took to produce it.
(d) The price of its raw materials.
9. How did the idea of division of labor come about?
(a) It was an experiment which owners found to be advantageous.
(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 a consequence of the applied study of manufacturing.
10. In all countries, what do men prefer in exchange for commodities?
(b) Precious metals.
(c) Like goods.
(d) Gem stones.
11. What is the real price of a thing a person wants?
(a) The toil and trouble of acquiring it.
(b) The labor it takes to pay for it.
(c) The price marked as its cost.
(d) The money it takes to purchase it.
12. Under division of labor, what generally supplies a man's wants?
(a) The produce of the country's labor.
(b) The produce of other men's labor.
(c) The produce of a man's own labor.
(d) The produce of society's labor.
13. What limits the extent of the division of labor?
(a) The population.
(b) The workmen.
(c) The market.
(d) The raw products.
14. What kind of revenue constitutes the whole annual produce of the a country's land and labor?
(a) Net revenue.
(b) Gross revenue.
(c) Production revenue.
(d) Consumption revenue.
15. What was the common instrument of commerce among the ancient Spartans?
Short Answer Questions
1. What was one problem with the use of rude metals?
2. Why are the silks of France better and cheaper than those of England?
3. In every occupation, what is the general proportion between circulating and fixed capital?
4. In what country is the Ganges River?
5. Why are new machines more likely to be invented under division of labor?
This section contains 597 words
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