|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. In all countries, what do men prefer in exchange for commodities?
(b) Precious metals.
(c) Like goods.
(d) Gem stones.
2. What kind of demand brings a commodity to market?
(a) A proportionate demand.
(b) An absolute demand.
(c) An effectual demand.
(d) A natural demand.
3. What kind of commodity must be sold quickly?
(a) Those which will not endure.
(b) Those in short supply.
(c) Those no longer wanted.
(d) Those with abundance of supply.
4. What does the division of labor do for a manufacturer?
(a) It simplifies the productive powers of labor.
(b) It decreases the productive powers of labor.
(c) It complicates the productive powers of labor.
(d) It increases the productive powers of labor.
5. Why are new machines more likely to be invented under division of labor?
(a) New machines are required when labor has been divided.
(b) Division of labor promotes speculation and new ideas to be tried.
(c) Men are more likely to discover more efficient methods of production when their entire focus is directed towards a single step of the process.
(d) Men have more time to experiment with various options and potential improvements.
6. What is the ultimate and real standard by which the value of all commodities can, at all times and places, be estimated and compared?
7. What is the intention of the fixed capital?
(a) To increase the speed of manufacturing.
(b) To decrease the overhead cost of manufacturing.
(c) To decrease the number of workmen needed.
(d) To increase the productive powers of labour.
8. What is true about the amount of metal coins which circulate in a society?
(a) They are equal to the revenue of the society.
(b) They fluctuate the revenue of the society.
(c) They have no relation to the revenue of the society.
(d) They can never be equal to the revenue of the society.
9. The ordinary or average rates of wages, profit, and rent may also be called what?
(a) The derived rates.
(b) The natural rates.
(c) The commodity rates.
(d) The common rates.
10. What was the common instrument of commerce among the ancient Spartans?
11. To what price do all commodities gravitate?
(a) The effectual price.
(b) The nominal price.
(c) The stated price.
(d) The natural price.
12. What was the original price, the first purchase cost, for all things?
(d) Exchange of goods.
13. Who are most likely to make improvements upon or invent new machines for manufacture?
(a) The man who repairs and cleans the machines.
(b) Those who work with or make the machines.
(c) The man who is responsible for the running of the manufacturing process.
(d) The owner of the manufacturing process.
14. What kind of revenue is made from the interest on money?
(a) Laborless revenue.
(b) Taxable revenue.
(c) Derivative revenue.
(d) Renewable revenue.
15. What becomes the common instrument of commerce when barter ceases?
(b) Gem stones.
Short Answer Questions
1. 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?
2. 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?
3. What is one consequence for society where the division of labor is practiced?
4. What is the real price of a thing a person wants?
5. Commonly, why does man #1 help man #2?
This section contains 623 words
(approx. 3 pages at 300 words per page)