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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. In what country is the Ganges River?
(a) Italy.
(b) Bengal.
(c) Egypt.
(d) India.

2. Why are the silks of France better and cheaper than those of England?
(a) Because silk manufacturing is not popular in England.
(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 there is little demand for English silk.

3. Under what circumstance would every man have to perform exactly the same duties and do exactly the same work?
(a) If there were no difference of talent.
(b) If there were no truck, barter, and exchange.
(c) If there were no manufacturers of commodities.
(d) If there were no organized society.

4. What is the real price of a thing a person wants?
(a) The money it takes to purchase it.
(b) The price marked as its cost.
(c) The toil and trouble of acquiring it.
(d) The labor it takes to pay for it.

5. What does the division of labor do for individual workmen?
(a) It enables each man to work fewer hours.
(b) It reduces every man's job to one simple operation.
(c) It gives each man more work to do.
(d) It teaches each man a new skill.

Short Answer Questions

1. What is the nominal price of a commodity?

2. What do princes and sovereign states frequently do with their coinage?

3. Why are new machines more likely to be invented under division of labor?

4. What is the state of the greater part of the laboring poor in all countries?

5. What can be said for division of labor for all kinds of manufacturing?

Short Essay Questions

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

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

3. What is the difference between the real price of a commodity and the nominal price of a commodity?

4. Explain a farmer's fixed and circulating capital.

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

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

7. Using an example from the text, explain how the value of the most precious metal used for coinage regulates the value of coins made with a lesser metal.

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

9. What are the two ways in which a capital may be employed so as to yield a revenue or profit to its employer.

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

(see the answer keys)

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