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

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

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

4. What is one consequence for society where the division of labor is practiced?
(a) Manufacturing is always growing.
(b) There is no unemployment.
(c) Wealth is enjoyed by even the lowest classes of people.
(d) All men are capable of learning a new trade.

5. 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?
(a) Five weeks.
(b) Four weeks.
(c) Seven weeks.
(d) Six weeks.

Short Answer Questions

1. What is the actual price at which any commodity is commonly sold called?

2. In what country is the Ganges River?

3. How many general types of circulating capital are there?

4. 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?

5. How are a philosopher and a street porter the same?

Short Essay Questions

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

2. In all countries, why are precious metals the preferred means of commerce?

3. What was the purpose of the first public stamps affixed to metals?

4. Who or what is involved in the manufacture and sale of a woolen coat?

5. Why do commercial nations use coins of different kinds of metals?

6. How does the market limit the division of labor?

7. How do fixed capital and circulating money resemble each other?

8. In every society or neighborhood, how is the ordinary or average rate both of wages and profit regulated?

9. What are the two possible origins of the propensity to truck, barter, and exchange one thing for another?

10. What two advantages did the banking companies of Scotland gain by dealing only with men who had frequent and regular operations with them?

(see the answer keys)

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