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This quiz consists of 5 multiple choice and 5 short answer questions through End of Book 3 & Book 4, Chapter 1.

Multiple Choice Questions

1. What does a North American colonial artificer do when he has acquired a little more stock than is necessary for carrying on his own business in supplying the neighboring country?
(a) He reinvests his stock into his business.
(b) He seeks to sell in distance towns.
(c) He invests his stock in more workmen.
(d) He buys land for improvement.

2. What is the common instrument of commerce and exchanges in Abyssinia?
(a) Sugar.
(b) Salt.
(c) Tobacco.
(d) Shells.

3. What is a consequence of replacing gold money with paper money?
(a) It costs less both to erect and to maintain.
(b) It allows for more buying power.
(c) It allows for increased wages.
(d) It promotes a new industry.

4. In every occupation, what is the general proportion between circulating and fixed capital?
(a) They are always equal.
(b) They are varyingly very different.
(c) There is always more fixed capital.
(d) There is always more circulating capital.

5. Why are new machines more likely to be invented under division of labor?
(a) New machines are required when labor has been divided.
(b) Division of labor promotes speculation and new ideas to be tried.
(c) Men have more time to experiment with various options and potential improvements.
(d) Men are more likely to discover more efficient methods of production when their entire focus is directed towards a single step of the process.

Short Answer Questions

1. What does the text say about the difference of the natural talents in men?

2. Where do a merchant's or retailer's profits come from?

3. In the rude ages of society, what was the common instrument of commerce?

4. What happens to productive labor when the funds for maintaining it are increased?

5. How many general types of circulating capital are there?

(see the answer key)

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