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This quiz consists of 5 multiple choice and 5 short answer questions through Book 2, Chapter 1.

Multiple Choice Questions

1. What can be said for division of labor for all kinds of manufacturing?
(a) The quality of products manufactured are improved greatly.
(b) Machines replace many workmen who are moved to other jobs.
(c) Many individuals and processes come together to complete a product.
(d) Division of labor does not affect the quantity of products manufactured.

2. What kind of business does not lend itself to many subdivisions of labor?
(a) Agriculture.
(b) Textile manufacturing.
(c) Foundry.
(d) Ship building.

3. What reduced the value of gold and silver in Europe in the 16th century?
(a) The discovery of mines in Peru.
(b) The depletion of mines in Europe.
(c) The discovery of mines in America.
(d) The depletion of mines in America.

4. What is capital?
(a) Stock traded for other goods.
(b) Stock which a man consumes.
(c) Stock reserved for future needs.
(d) Stock from which revenue is expected.

5. What is the real measure of the exchangeable value of all commodities?
(a) Gold.
(b) Barter.
(c) Labor.
(d) Exchange of goods.

Short Answer Questions

1. What was the original price, the first purchase cost, for all things?

2. What is one characteristics of a fixed capital?

3. In the ancient world, what was considered a most wonderful and dangerous exploit of navigation?

4. What kind of capital is employed in raising, manufacturing, or purchasing goods, and selling them again with a profit?

5. What does the division of labor do for individual workmen?

(see the answer key)

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