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

Multiple Choice Questions

1. How do most men choose to employ their capitals?
(a) Foreign trade.
(b) Improvement of land.
(c) Agriculture.
(d) Manufactures.

2. At the time the book was written, what commodity regulated the value of all other home-made commodities?
(a) Wheat.
(b) Wine.
(c) Corn.
(d) Textiles.

3. What are the two kinds of labor?
(a) Manual and mental.
(b) Professional and unskilled.
(c) Productive and unproductive.
(d) Wage earning and charitable.

4. Who besides productive and unproductive laborers are all equally maintained by the annual produce of the land and labor of the country?
(a) Those who are not citizens of the country.
(b) Those who labor in another country.
(c) Those who labor only for themselves.
(d) Those who do not labor at all.

5. During the sixteenth century, who claimed all of America as its own?
(a) Portugal.
(b) Holland.
(c) Spain.
(d) Great Britain.

6. What has increased in countries where interest on borrowed money has been prohibited by law?
(a) Usury has increased.
(b) Industry does not grow.
(c) Capital is stagnant.
(d) Money is borrowed from other countries.

7. In 1715, what was the name of the accumulated taxes which had been mortgaged for paying the bank annuity?
(a) The Augmented Fund.
(b) The Aggregate Fund.
(c) The Accumulated Fund.
(d) The Differential Fund.

8. What was the common rate of interest on borrowing through the greater part of Europe before the discovery of the West Indies?
(a) 11%.
(b) 12%.
(c) 9%.
(d) 10%.

9. Sugar was originally an enumerated commodity which could be exported only to which country?
(a) North America.
(b) Jamaica.
(c) Spain.
(d) Great Britain.

10. Where do a merchant's or retailer's profits come from?
(a) From what they both buy and sell.
(b) From what they save.
(c) From what they sell.
(d) From what they buy.

11. What happens when the quantity of silver increases?
(a) Its value is increased.
(b) Its value is under appreciated.
(c) Its value is diminished.
(d) Its value is unaffected.

12. What supplies the inhabitants of the town both with the materials of their work, and the means of their subsistence?
(a) Cultivation.
(b) Commerce.
(c) Artificers.
(d) Raw materials.

13. What comes before convenience?
(a) Luxury.
(b) Opulence.
(c) Maintenance.
(d) Subsistence.

14. What was the first article in the treaty of commerce between England and Portugal?
(a) British corn will be exported to Portugal.
(b) British woolen cloth will be exported to Portugal.
(c) British wine will be exported to Portugal.
(d) British wheat will be exported to Portugal.

15. As capital increases in any country, what happens to the profits which can be made by employing them ?
(a) They remain the same.
(b) They promote growth.
(c) They increase.
(d) They decrease.

Short Answer Questions

1. What is true of both a farm and a retail trade?

2. Which profession is not an example of an artificer?

3. What does an artificer who lives where there is either no uncultivated land, or none that can be had upon easy terms, do when he has acquired a little more stock than is necessary for carrying on his own business in supplying the neighboring country?

4. What is a common source of revenue for small republics?

5. What does the lender consider stock lent at an interest?

(see the answer keys)

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