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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 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 out of the Streights of Gibraltar.
(c) To sail with a woman on board.
(d) To sail down an unknown coast.

2. Which commodity is more susceptible to price variations?
(a) Wool.
(b) Gold.
(c) Corn.
(d) Linen.

3. What becomes the common instrument of commerce when barter ceases?
(a) Money.
(b) Gem stones.
(c) Silver.
(d) Gold.

4. According to the text, what does this saying describe: "Give me that which I want, and you shall have this which you want"?
(a) A business propostion.
(b) A fair trade.
(c) A mutual offer.
(d) A bargain.

5. Originally, what did sailors fear?
(a) That islands moved around in the sea.
(b) That their compasses were inaccurate.
(c) Navigating on a cloudy night.
(d) Being out of sight of the shore.

Short Answer Questions

1. What kind of rent comes to the landlord after deducting the expense of management, of repairs, and all other necessary charges?

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

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

4. What is the real price of a thing a person wants?

5. By the nature of things, what must there be before the division of labor in a particular job?

Short Essay Questions

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

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

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

4. Why are circulating and fixed capital different for different occupations?

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

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

7. What would happen at the end of a war, if the enemy confiscated the gold upon which the losing country's paper money was based?

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

9. Who commonly makes improvements in manufacturing machinery?

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

(see the answer keys)

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