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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. Under what circumstance would every man have to perform exactly the same duties and do exactly the same work?
(a) If there were no organized society.
(b) If there were no difference of talent.
(c) If there were no manufacturers of commodities.
(d) If there were no truck, barter, and exchange.

2. What regulates the price of every particular commodity?
(a) Profit and wages.
(b) Labor and wages.
(c) Supply and demand.
(d) Labor and profit.

3. What does the text say about the difference of the natural talents in men?
(a) That all men have unique talents unto themselves.
(b) That talent is natural and cannot be cultivated or improved.
(c) That they are not really that different.
(d) That they are so different as so never to be changeable.

4. Why are new machines more likely to be invented under division of labor?
(a) Division of labor promotes speculation and new ideas to be tried.
(b) New machines are required when labor has been divided.
(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.

5. What kind of commodity must be sold quickly?
(a) Those with abundance of supply.
(b) Those no longer wanted.
(c) Those which will not endure.
(d) Those in short supply.

Short Answer Questions

1. What kind of revenue is made from the interest on money?

2. What happens when the demand of a commodity is larger than the supply?

3. What is the only universal, only accurate measure of value, only standard by which we can compare the values of different commodities at all times and at all places?

4. A part of which area was included in ancient Scythia?

5. What kind of demand brings a commodity to market?

Short Essay Questions

1. What was the purpose of the first public stamps affixed to metals?

2. Why is it difficult to determine the exchange value between two different kinds of labor?

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

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

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

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

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

8. How are the differences in men of different professions fostered?

9. In every society or neighborhood, how is the ordinary or average rate both of wages and profit regulated?

10. In every society or neighborhood, how is an ordinary or average rate of rent regulated?

(see the answer keys)

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