View a FREE sample

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

Multiple Choice Questions

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

2. Which is not a reason for the increase of the quantity of work under division of labor?
(a) Time efficiencies.
(b) The increase of the workmen's dexterity.
(c) The employment of more workmen.
(d) The invention of machines which enable one man to do the work of many.

3. How did the idea of division of labor come about?
(a) It was a consequence of the applied study of manufacturing.
(b) It was an accident which resulted in positive change.
(c) It was the propensity of human nature to truck, barter, and exchange one thing for another.
(d) It was an experiment which owners found to be advantageous.

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

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

6. 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) Diminish the quantity of pure metal contained in their coins.
(c) Substitute the quantity of pure metal contained in their coins.
(d) Augment the quantity of pure metal contained in their coins.

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

8. 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?
(a) Gem stones.
(b) Labor.
(c) Gold.
(d) Silver.

9. In all countries, what do men prefer in exchange for commodities?
(a) Gem stones.
(b) Precious metals.
(c) Labor.
(d) Like goods.

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

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

12. How many general types of fixed capital are there?
(a) Two.
(b) Five.
(c) Four.
(d) Three.

13. 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 down an unknown coast.
(c) To sail out of the Streights of Gibraltar.
(d) To not invoke the gods' blessings on the journey.

14. What is the common instrument of commerce and exchanges in some parts of the coast of India?
(a) Salt.
(b) Sugar.
(c) Tobacco.
(d) Shells.

15. What kind of business does not lend itself to many subdivisions of labor?
(a) Ship building.
(b) Agriculture.
(c) Foundry.
(d) Textile manufacturing.

Short Answer Questions

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

2. What is the intention of the fixed capital?

3. What are the three original sources of all revenue?

4. What kind of capital is employed in raising, manufacturing, or purchasing goods, and selling them again with a profit?

5. When was the Bank of England incorporated?

(see the answer keys)

This section contains 631 words (approx. 3 pages at 300 words per page) View a FREE sample