|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. Which Mediterranean country seems to have been the first in which either agriculture or manufacturers were cultivated and improved to any considerable degree?
2. What is the ultimate and real standard by which the value of all commodities can, at all times and places, be estimated and compared?
3. What reduced the value of gold and silver in Europe in the 16th century?
(a) The depletion of mines in America.
(b) The depletion of mines in Europe.
(c) The discovery of mines in Peru.
(d) The discovery of mines in America.
4. What is the real measure of the exchangeable value of all commodities?
(a) Exchange of goods.
5. Which occupation requires a great town?
6. Which country's inland navigation caused its early improvement?
7. What year was the Bank of England allowed to enlarge its capital stock?
8. What is capital?
(a) Stock from which revenue is expected.
(b) Stock traded for other goods.
(c) Stock which a man consumes.
(d) Stock reserved for future needs.
9. In some measure, every man in a growing commercial society becomes what?
(a) A merchant.
(b) A farmer.
(c) A scholar.
(d) A tinker.
10. What kind of demand brings a commodity to market?
(a) An absolute demand.
(b) A proportionate demand.
(c) An effectual demand.
(d) A natural demand.
11. 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 not invoke the gods' blessings on the journey.
(d) To sail out of the Streights of Gibraltar.
12. What word expressed the weight or quantity of metal contained in the first coins?
13. What happens if the supply of a commodity is greater than the demand for it?
(a) The commodity goes to waste.
(b) The merchant returns the goods.
(c) The price rises.
(d) The price drops.
14. To what price do all commodities gravitate?
(a) The effectual price.
(b) The nominal price.
(c) The stated price.
(d) The natural price.
15. What kind of capital is employed in raising, manufacturing, or purchasing goods, and selling them again with a profit?
(a) Circulating capital.
(b) Improving capital.
(c) Instrumental capital.
(d) Fixed capital.
Short Answer Questions
1. What kind of capital is employed in the improvement of land and in the purchase of useful machines and instruments of trade?
2. In what country is the Ganges River?
3. When was the Bank of England incorporated?
4. What is the common instrument of commerce and exchanges in Abyssinia?
5. What happens in every country that employs an increase in stock?
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