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This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. In the rude ages of society, what was the common instrument of commerce?
(a) Labor.
(b) Food stuffs.
(c) Textiles.
(d) Cattle.

2. What opens an even more extensive market to every sort of industry?
(a) Improved inland transporation.
(b) Water-carriage.
(c) Land-carriage.
(d) Faster horses.

3. What happens if the supply of a commodity is greater than the demand for it?
(a) The merchant returns the goods.
(b) The price drops.
(c) The commodity goes to waste.
(d) The price rises.

4. To what price do all commodities gravitate?
(a) The stated price.
(b) The effectual price.
(c) The nominal price.
(d) The natural price.

5. What was one problem with the use of rude metals?
(a) Mining them.
(b) Transporting them.
(c) Keeping them safe.
(d) Weighing them.

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

7. What is the state of the greater part of the laboring poor in all countries?
(a) Their labor is sporadic and not continual.
(b) Their labor is not enough for sustenance.
(c) Their revenue is derived from their labor only.
(d) Their revenue is not enough for sustenance.

8. How are a philosopher and a street porter the same?
(a) Their desire and motivations would be very similar.
(b) Their first six years of life would have been very similar.
(c) Their family life would be very similar.
(d) Their goals for life would be very similar.

9. What happens in every country that employs an increase in stock?
(a) The same quantity of industry produces a greater quantity of work.
(b) The same quantity of industry produces a lesser quantity of work.
(c) The greater quantity of industry produces a greater quantity of work.
(d) The lesser quantity of industry produces produces a greater quantity of work.

10. When was the Bank of England incorporated?
(a) The 27th of July, 1695.
(b) The 27th of July, 1694.
(c) The 27th of July, 1696.
(d) The 27th of July, 1693.

11. The laborer is rich or poor, is well or ill rewarded, in proportion to what?
(a) The nominal price of his labor.
(b) The real price of his labor.
(c) The nominal price of his purchases.
(d) The real price of his purchases.

12. What becomes the common instrument of commerce when barter ceases?
(a) Money.
(b) Gold.
(c) Gem stones.
(d) Silver.

13. In what country is the Ganges River?
(a) India.
(b) Egypt.
(c) Bengal.
(d) Italy.

14. What kind of revenue remains free to a country after deducting the expense of maintaining their fixed circulating capital?
(a) Consumption revenue.
(b) Production revenue.
(c) Gross revenue.
(d) Net revenue.

15. What encourages every man to apply himself to an occupation and cultivate whatever talent he may possess for that particular business?
(a) The desire that the knowledge of his occupation will be passed down to his sons and grandsons.
(b) The knowledge that his surplus of production can be exchanged for something he needs.
(c) The knowledge that his productive life enriches the lives of others.
(d) The hope that his expertise will allow him to excel in even greater endeavors.

Short Answer Questions

1. What year was the Bank of England allowed to enlarge its capital stock?

2. How does division of labor affect the time required for the manufacturing process?

3. What is the common instrument of commerce and exchanges in Abyssinia?

4. How are the dispositions that form the difference of talents of various professions considered?

5. What kind of rent comes to the landlord after deducting the expense of management, of repairs, and all other necessary charges?

(see the answer keys)

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