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

Multiple Choice Questions

1. What kind of capital is employed in raising, manufacturing, or purchasing goods, and selling them again with a profit?
(a) Circulating capital.
(b) Fixed capital.
(c) Instrumental capital.
(d) Improving capital.

2. What regulates the price of every particular commodity?
(a) Profit and wages.
(b) Labor and profit.
(c) Supply and demand.
(d) Labor and wages.

3. In the ancient world, what was considered a most wonderful and dangerous exploit of navigation?
(a) To sail with a woman on board.
(b) To sail out of the Streights of Gibraltar.
(c) To not invoke the gods' blessings on the journey.
(d) To sail down an unknown coast.

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

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

6. A part of which area was included in ancient Scythia?
(a) Siberia.
(b) Bavaria.
(c) Siam.
(d) Euxine.

7. Which occupation requires a great town?
(a) Sailor.
(b) Poet.
(c) Farmer.
(d) Butcher.

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

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

10. What is the actual price at which any commodity is commonly sold called?
(a) The derived price.
(b) The market price.
(c) The asking price.
(d) The prime price.

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

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

13. What is another name for paper money?
(a) Promissory notes.
(b) Debtors' notes.
(c) Circulating notes.
(d) Commerce notes.

14. What does the text say about the difference of the natural talents in men?
(a) That they are not really that different.
(b) That talent is natural and cannot be cultivated or improved.
(c) That all men have unique talents unto themselves.
(d) That they are so different as so never to be changeable.

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

Short Answer Questions

1. What is the intention of the fixed capital?

2. What encourages every man to apply himself to an occupation and cultivate whatever talent he may possess for that particular business?

3. In every occupation, what is the general proportion between circulating and fixed capital?

4. Where are the separation of different trades and employments from one another generally found?

5. What is one consequence for society where the division of labor is practiced?

(see the answer keys)

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