|Name: _________________________||Period: ___________________|
This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.
Short Answer Questions
1. What is a borrower who uses his borrowed stock for immediate consumption?
2. What is an example of a mercantile project?
3. What does a man expect when he employs his stock as capital?
4. How are almost all loans made?
5. How do most men choose to employ their capitals?
Short Essay Questions
1. How is unproductive labor maintained by revenue?
2. How does the capital of a retailer and manufacturer differ?
3. How has the natural order of growth been inverted in some of the the modern states of Europe?
4. Why do most men choose to employ their capitals in the improvement and cultivation of land?
5. How is the military an example of unproductive labor?
6. According to the author, why do men prefer slave labor rather than the services of freemen?
7. What are the two ways to impose land tax?
8. What is the principal cause for the rapid progress of the American colonies towards wealth?
9. Why does the colony of a civilized nation which takes possession of thinly inhabited country make rapid advances in that country?
10. Why does want of parsimony in time of peace necessitate the contracting of debt in time of war?
Write an essay for ONE of the following topics:
Essay Topic 1
The text says "Labour measures the value not only of that part of price which resolves itself into labour, but of that which resolves itself into rent, and of that which resolves itself into profit." Explain with examples how the price of every commodity in every improved society finally resolves itself into all of those three parts.
Essay Topic 2
"When a nation binds itself by treaty either to permit the entry of certain goods from one foreign country which it prohibits from all others, or to exempt the goods of one country from duties to which it subjects those of all others, the country, or at least the merchants and manufacturers of the country, whose commerce is so favored, must necessarily derive great advantage from the treaty." Explain with examples, how treaties, though they may be advantageous to the merchants and manufacturers of the favored, are necessarily disadvantageous to those of the favoring country.
Essay Topic 3
The gross revenue of a great country includes the whole annual produce of their land and labor and their net revenue, calculated after deducting the expense of maintaining their fixed and circulating capital. Explain with examples how fixed capital is maintained and how this maintenance benefits revenue.
This section contains 1,032 words
(approx. 4 pages at 300 words per page)