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This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

1. What word expressed the weight or quantity of metal contained in the first coins?
(a) Stamp.
(b) Denomination.
(c) Purity.
(d) Fineness.

2. What is it called when gold purchases goods in one foreign country in order to supply the consumption of another?
(a) Foreign purchase trade.
(b) Consumption trade.
(c) Domestic revenue trade.
(d) Carrying trade.

3. What is the common instrument of commerce and exchanges in Abyssinia?
(a) Tobacco.
(b) Shells.
(c) Salt.
(d) Sugar.

4. What encourages every man to apply himself to an occupation and cultivate whatever talent he may possess for that particular business?
(a) The desire that the knowledge of his occupation will be passed down to his sons and grandsons.
(b) The hope that his expertise will allow him to excel in even greater endeavors.
(c) The knowledge that his surplus of production can be exchanged for something he needs.
(d) The knowledge that his productive life enriches the lives of others.

5. In all countries, what do men prefer in exchange for commodities?
(a) Like goods.
(b) Gem stones.
(c) Labor.
(d) Precious metals.

Short Answer Questions

1. What was the common instrument of commerce among the ancient Romans?

2. In what country is the Ganges River?

3. Which is not a reason for the increase of the quantity of work under division of labor?

4. 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?

5. What is the common instrument of commerce and exchanges in Virginia?

Short Essay Questions

1. Why do commercial nations use coins of different kinds of metals?

2. Why is the division of labor not considered the effect of human wisdom?

3. Who or what is involved in the manufacture and sale of a woolen coat?

4. Why was the weighing of precious metals a problem with their use in their crude state?

5. Explain a farmer's fixed and circulating capital.

6. Give one example of how a tribe of hunters or shepherds would begin the process of division of labor?

7. Give one example of how a country workman is obliged to apply himself to all the different branches of industry that employ the same sort of materials.

8. What two values does the workman add to manufactured materials?

9. How does private property change the land of any country?

10. What three circumstances increase the quantity of work as a consequence of the division of labor?

(see the answer keys)

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