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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 kind of demand brings a commodity to market?
(a) A natural demand.
(b) A proportionate demand.
(c) An effectual demand.
(d) An absolute demand.

2. What limits the extent of the division of labor?
(a) The population.
(b) The workmen.
(c) The raw products.
(d) The market.

3. What does the author consider to be a wasteful use of gold?
(a) Goblets.
(b) Picture frames.
(c) Flatware.
(d) Gilding and plating.

4. What is the sole end and purpose both of the fixed and circulating capitals?
(a) To maintain and augment the stock which may be sold for profit.
(b) To maintain and augment the stock which may be reserved for immediate consumption.
(c) To maintain and augment the stock which may be traded for needed goods.
(d) To maintain and augment the stock which may be used to expand the business.

5. What kind of rent is paid by a farmer?
(a) Production rent.
(b) Net rent.
(c) Consumption rent.
(d) Gross rent.

Short Answer Questions

1. What does the part of the annual production of the land and labor of any country which replaces a capital do?

2. 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?

3. What does the proportion between capital and revenue regulate?

4. What three ways do we obtain from one another the greater part of those mutual good offices which we stand in need of?

5. What does an artificer who lives where there is either no uncultivated land, or none that can be had upon easy terms, do when he has acquired a little more stock than is necessary for carrying on his own business in supplying the neighboring country?

(see the answer key)

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