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This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

1. What commodity would a butcher be unlikely to exchange for?
(a) Bread.
(b) Cloth.
(c) Meat.
(d) Wine.

2. What opens an even more extensive market to every sort of industry?
(a) Improved inland transporation.
(b) Water-carriage.
(c) Land-carriage.
(d) Faster horses.

3. What reduced the value of gold and silver in Europe in the 16th century?
(a) The depletion of mines in Europe.
(b) The discovery of mines in Peru.
(c) The depletion of mines in America.
(d) The discovery of mines in America.

4. What happens when the demand of a commodity is larger than the supply?
(a) The commodity is sold out.
(b) More goods are brought in.
(c) The price rises.
(d) The price falls.

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

Short Answer Questions

1. What is it called when gold purchases goods in one foreign country in order to supply the consumption of another?

2. What regulates the price of every particular commodity?

3. What becomes the common instrument of commerce when barter ceases?

4. Which is not a reason for the increase of the quantity of work under division of labor?

5. Who are most likely to make improvements upon or invent new machines for manufacture?

Short Essay Questions

1. In every society or neighborhood, how is an ordinary or average rate of rent regulated?

2. How does private property change the land of any country?

3. What two values does the workman add to manufactured materials?

4. Circulating capital which affords a revenue is composed of four parts. What are those four parts?

5. What three circumstances increase the quantity of work as a consequence of the division of labor?

6. Why was the weighing of precious metals a problem with their use in their crude state?

7. Who commonly makes improvements in manufacturing machinery?

8. Why is the division of labor not considered the effect of human wisdom?

9. Why did the first recorded civilizations dwell on the coast of the Mediterranean Sea?

10. Give one example of how a country workman is obliged to apply himself to all the different branches of industry that employ the same sort of materials.

(see the answer keys)

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