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

Multiple Choice Questions

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

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

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

4. What does the division of labor do for individual workmen?
(a) It enables each man to work fewer hours.
(b) It reduces every man's job to one simple operation.
(c) It teaches each man a new skill.
(d) It gives each man more work to do.

5. Under what circumstance would every man have to perform exactly the same duties and do exactly the same work?
(a) If there were no manufacturers of commodities.
(b) If there were no organized society.
(c) If there were no difference of talent.
(d) If there were no truck, barter, and exchange.

6. What was the common instrument of commerce among the ancient Romans?
(a) Iron.
(b) Copper.
(c) Gold.
(d) Silver.

7. What do princes and sovereign states frequently do with their coinage?
(a) Refuse to change the quantity of pure metal contained in their coins.
(b) Substitute the quantity of pure metal contained in their coins.
(c) Diminish the quantity of pure metal contained in their coins.
(d) Augment the quantity of pure metal contained in their coins.

8. What is the intention of the fixed capital?
(a) To increase the speed of manufacturing.
(b) To increase the productive powers of labour.
(c) To decrease the number of workmen needed.
(d) To decrease the overhead cost of manufacturing.

9. What is the real price of a thing a person wants?
(a) The labor it takes to pay for it.
(b) The money it takes to purchase it.
(c) The price marked as its cost.
(d) The toil and trouble of acquiring it.

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

11. What kind of person depends chiefly on the benevolence of this fellow citizens?
(a) A woman.
(b) An unemployed man.
(c) A child.
(d) A beggar.

12. What are the three original sources of all revenue?
(a) Commerce, taxes, and trade.
(b) Profit, taxes, and commerce.
(c) Trade, taxes, and wages.
(d) Wages, profit, and rent.

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

14. Which country's inland navigation caused its early improvement?
(a) Italy.
(b) Egypt.
(c) Turkey.
(d) Greece.

15. According to Homer, how much did the armor of Diomede cost?
(a) Nine oxen.
(b) Ten oxen.
(c) Eleven oxen.
(d) Eight oxen.

Short Answer Questions

1. What is the common instrument of commerce and exchanges in Virginia?

2. What is a consequence of replacing gold money with paper money?

3. How are a philosopher and a street porter the same?

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

5. What becomes the common instrument of commerce when barter ceases?

(see the answer keys)

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