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

Multiple Choice Questions

1. What is the nominal price of a commodity?
(a) The price of its raw materials.
(b) The price asked for it.
(c) The net profit for the seller.
(d) The labor it took to produce it.

2. According to the author why, two or three centuries before, were his British ancestors mostly idle concerning industry?
(a) There was no sufficient encouragement to earn a wage.
(b) There was no sufficient encouragement to industry.
(c) There was no sufficient wage to work in industry.
(d) There was no sufficient industry to work in.

3. What does the division of labor do for a manufacturer?
(a) It increases the productive powers of labor.
(b) It simplifies the productive powers of labor.
(c) It decreases the productive powers of labor.
(d) It complicates the productive powers of labor.

4. Which Mediterranean country seems to have been the first in which either agriculture or manufacturers were cultivated and improved to any considerable degree?
(a) Italy.
(b) Egypt.
(c) Greece.
(d) Turkey.

5. 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) Carrying trade.
(d) Domestic revenue trade.

Short Answer Questions

1. What is not an example of unproductive labor?

2. What are the two kinds of labor?

3. How are capitals increased?

4. In all countries, what do men prefer in exchange for commodities?

5. What is a person's revenue equal to?

(see the answer key)

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