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This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. How did the idea of division of labor come about?
(a) It was the propensity of human nature to truck, barter, and exchange one thing for another.
(b) It was a consequence of the applied study of manufacturing.
(c) It was an experiment which owners found to be advantageous.
(d) It was an accident which resulted in positive change.
2. Originally, what did sailors fear?
(a) Navigating on a cloudy night.
(b) Being out of sight of the shore.
(c) That their compasses were inaccurate.
(d) That islands moved around in the sea.
3. What causes the difference between a philosopher and a street porter?
(a) Habit, custom, and education.
(b) Opportunity, talent, and birth.
(c) Natural talent and propensity.
(d) Birth, income, and upbringing.
4. What happens if the supply of a commodity is greater than the demand for it?
(a) The merchant returns the goods.
(b) The commodity goes to waste.
(c) The price rises.
(d) The price drops.
5. Under division of labor, what generally supplies a man's wants?
(a) The produce of the country's labor.
(b) The produce of society's labor.
(c) The produce of a man's own labor.
(d) The produce of other men's labor.
6. What was the original price, the first purchase cost, for all things?
(c) Exchange of goods.
7. What opens an even more extensive market to every sort of industry?
(b) Faster horses.
(d) Improved inland transporation.
8. What kind of revenue constitutes the whole annual produce of the a country's land and labor?
(a) Gross revenue.
(b) Consumption revenue.
(c) Net revenue.
(d) Production revenue.
9. What is the common instrument of commerce and exchanges in some parts of the coast of India?
10. Which country's inland navigation caused its early improvement?
11. What was the common instrument of commerce among the ancient Spartans?
12. How many general types of fixed capital are there?
13. In what country is the Ganges River?
14. What is the actual price at which any commodity is commonly sold called?
(a) The derived price.
(b) The market price.
(c) The asking price.
(d) The prime price.
15. What does the division of labor do for individual workmen?
(a) It reduces every man's job to one simple operation.
(b) It teaches each man a new skill.
(c) It enables each man to work fewer hours.
(d) It gives each man more work to do.
Short Answer Questions
1. In all countries, what do men prefer in exchange for commodities?
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. The laborer is rich or poor, is well or ill rewarded, in proportion to what?
4. What is a common characteristic for a workman under division of labor?
5. How are the dispositions that form the difference of talents of various professions considered?
This section contains 537 words
(approx. 2 pages at 300 words per page)