View a FREE sample

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

Multiple Choice Questions

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

2. What kind of revenue is made from the interest on money?
(a) Derivative revenue.
(b) Laborless revenue.
(c) Renewable revenue.
(d) Taxable revenue.

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

4. 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 toil and trouble of acquiring it.
(d) The price marked as its cost.

5. Where are the separation of different trades and employments from one another generally found?
(a) In those countries which enjoy the highest degree of industry and improvement.
(b) In those countries which have yet to pursue industry and improvement.
(c) In those countries which are have completed their industry and improvement.
(d) In those countries which have the least degree of industry and improvement.

6. Who are most likely to make improvements upon or invent new machines for manufacture?
(a) The man who repairs and cleans the machines.
(b) Those who work with or make the machines.
(c) The owner of the manufacturing process.
(d) The man who is responsible for the running of the manufacturing process.

7. What kind of rent comes to the landlord after deducting the expense of management, of repairs, and all other necessary charges?
(a) Consumption rent.
(b) Gross rent.
(c) Net rent.
(d) Production rent.

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

9. What was the original form of the metals used for commerce?
(a) Coins.
(b) Nuggets.
(c) Lumps.
(d) Bars.

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

11. What does the division of labor do for a manufacturer?
(a) It complicates the productive powers of labor.
(b) It increases the productive powers of labor.
(c) It simplifies the productive powers of labor.
(d) It decreases the productive powers of labor.

12. How does an individual live within a civilized society?
(a) He needs the cooperation and assistance of many other people.
(b) He is completely independent of other people.
(c) His dependence or independence is entirely up to him.
(d) He needs the cooperation and assistance of only his friends.

13. Why are the silks of France better and cheaper than those of England?
(a) Because there is little demand for English silk.
(b) Because France has an extreme surplus of silk manufacturers.
(c) Because silk manufacturing is not as well suited to the climate of England as it is to that of France.
(d) Because silk manufacturing is not popular in England.

14. Which commodity is more susceptible to price variations?
(a) Gold.
(b) Corn.
(c) Wool.
(d) Linen.

15. Why are new machines more likely to be invented under division of labor?
(a) Division of labor promotes speculation and new ideas to be tried.
(b) Men are more likely to discover more efficient methods of production when their entire focus is directed towards a single step of the process.
(c) New machines are required when labor has been divided.
(d) Men have more time to experiment with various options and potential improvements.

Short Answer Questions

1. Under division of labor, what generally supplies a man's wants?

2. What is the intention of the fixed capital?

3. What limits the extent of the division of labor?

4. How long would it take for a broad-wheeled wagon, attended by two men, and drawn by eight horses, to carry four tons of goods between London and Edinburgh?

5. What is another name for paper money?

(see the answer keys)

This section contains 643 words (approx. 3 pages at 300 words per page) View a FREE sample