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Multiple Choice Questions
1. What is the sole end and purpose both of the fixed and circulating capitals?
(a) To maintain and augment the stock which may be reserved for immediate consumption.
(b) To maintain and augment the stock which may be used to expand the business.
(c) To maintain and augment the stock which may be sold for profit.
(d) To maintain and augment the stock which may be traded for needed goods.
2. According to Homer, how much did the armor of Diomede cost?
(a) Nine oxen.
(b) Eleven oxen.
(c) Eight oxen.
(d) Ten oxen.
3. Which commodity is more susceptible to price variations?
4. Labor measures the value of price which resolves itself into labor, rent, and what one other thing?
5. How many general types of fixed capital are there?
Short Answer Questions
1. What commodity would a butcher be unlikely to exchange for?
2. According to the text, what does this saying describe: "Give me that which I want, and you shall have this which you want"?
3. What kind of commodity must be sold quickly?
4. 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?
5. What is the state of the greater part of the laboring poor in all countries?
Short Essay Questions
1. Why is it difficult to determine the exchange value between two different kinds of labor?
2. In every society or neighborhood, how is the ordinary or average rate both of wages and profit regulated?
3. How are the differences in men of different professions fostered?
4. Why is the division of labor not considered the effect of human wisdom?
5. Why was the weighing of precious metals a problem with their use in their crude state?
6. What three circumstances increase the quantity of work as a consequence of the division of labor?
7. Why are circulating and fixed capital different for different occupations?
8. What two values does the workman add to manufactured materials?
9. Why did the first recorded civilizations dwell on the coast of the Mediterranean Sea?
10. Give one example of how a tribe of hunters or shepherds would begin the process of division of labor?
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