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This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. What can be said for division of labor for all kinds of manufacturing?
(a) Division of labor does not affect the quantity of products manufactured.
(b) Machines replace many workmen who are moved to other jobs.
(c) The quality of products manufactured are improved greatly.
(d) Many individuals and processes come together to complete a product.
2. What is capital?
(a) Stock reserved for future needs.
(b) Stock from which revenue is expected.
(c) Stock traded for other goods.
(d) Stock which a man consumes.
3. What do princes and sovereign states frequently do with their coinage?
(a) Refuse to change the quantity of pure metal contained in their coins.
(b) Substitute the quantity of pure metal contained in their coins.
(c) Diminish the quantity of pure metal contained in their coins.
(d) Augment the quantity of pure metal contained in their coins.
4. 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 training of workmen.
(c) The accumulation of stock.
(d) The distribution of goods.
5. Which country's inland navigation caused its early improvement?
6. Originally, what did sailors fear?
(a) That their compasses were inaccurate.
(b) Navigating on a cloudy night.
(c) Being out of sight of the shore.
(d) That islands moved around in the sea.
7. What is the common instrument of commerce and exchanges in Abyssinia?
8. Which occupation requires a great town?
9. What kind of person depends chiefly on the benevolence of this fellow citizens?
(a) A beggar.
(b) A child.
(c) An unemployed man.
(d) A woman.
10. What are the three original sources of all revenue?
(a) Trade, taxes, and wages.
(b) Profit, taxes, and commerce.
(c) Commerce, taxes, and trade.
(d) Wages, profit, and rent.
11. What is the nominal price of a commodity?
(a) The price of its raw materials.
(b) The net profit for the seller.
(c) The labor it took to produce it.
(d) The price asked for it.
12. What opens an even more extensive market to every sort of industry?
(b) Faster horses.
(d) Improved inland transporation.
13. 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 down an unknown coast.
(c) To sail out of the Streights of Gibraltar.
(d) To not invoke the gods' blessings on the journey.
14. What was the original price, the first purchase cost, for all things?
(b) Exchange of goods.
15. What happens when the demand of a commodity is larger than the supply?
(a) The price rises.
(b) The commodity is sold out.
(c) More goods are brought in.
(d) The price falls.
Short Answer Questions
1. What kind of business does not lend itself to many subdivisions of labor?
2. What kind of revenue remains free to a country after deducting the expense of maintaining their fixed circulating capital?
3. In what country is the Ganges River?
4. What does the division of labor do for individual workmen?
5. What is one characteristic of the Mediterranean Sea which made it favorable for infant navigation?
This section contains 541 words
(approx. 2 pages at 300 words per page)