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

Multiple Choice Questions

1. How are the dispositions that form the difference of talents of various professions considered?
(a) They are considered inconsequential.
(b) They are considered useful.
(c) They are considered a hindrance to progress.
(d) They are considered obstacles to overcome.

2. By the nature of things, what must there be before the division of labor in a particular job?
(a) The acquistion of capital.
(b) The training of workmen.
(c) The accumulation of stock.
(d) The distribution of goods.

3. Labor measures the value of price which resolves itself into labor, rent, and what one other thing?
(a) Wages.
(b) Profit.
(c) Tax.
(d) Demand.

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

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

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

7. What is the sole end and purpose both of the fixed and circulating capitals?
(a) To maintain and augment the stock which may be traded for needed goods.
(b) To maintain and augment the stock which may be reserved for immediate consumption.
(c) To maintain and augment the stock which may be used to expand the business.
(d) To maintain and augment the stock which may be sold for profit.

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

9. What three ways do we obtain from one another the greater part of those mutual good offices which we stand in need of?
(a) By labor, by charity, or by ingenuity.
(b) By treaty, by barter, or by purchase.
(c) By ingenuity, by treaty, or by purchase.
(d) By labor, by barter , or by charity.

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

11. What is a person's revenue equal to?
(a) The money left over after buying his necessities.
(b) The quantity of comsumable goods he can purchase.
(c) The wages he is paid.
(d) The stock that is put into reserve.

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

13. What kind of rent is paid by a farmer?
(a) Consumption rent.
(b) Production rent.
(c) Gross rent.
(d) Net rent.

14. 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.

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

Short Answer Questions

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

2. What was the common instrument of commerce among the ancient Spartans?

3. What does the division of labor do for a manufacturer?

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

5. Which country's inland navigation caused its early improvement?

(see the answer keys)

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