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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 three ways do we obtain from one another the greater part of those mutual good offices which we stand in need of?
(a) By labor, by charity, or by ingenuity.
(b) By ingenuity, by treaty, or by purchase.
(c) By labor, by barter , or by charity.
(d) By treaty, by barter, or by purchase.

2. Which Mediterranean country seems to have been the first in which either agriculture or manufacturers were cultivated and improved to any considerable degree?
(a) Turkey.
(b) Greece.
(c) Egypt.
(d) Italy.

3. What is the real measure of the exchangeable value of all commodities?
(a) Gold.
(b) Exchange of goods.
(c) Barter.
(d) Labor.

4. What was the original form of the metals used for commerce?
(a) Coins.
(b) Bars.
(c) Lumps.
(d) Nuggets.

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

Short Answer Questions

1. How does an individual live within a civilized society?

2. In the rude ages of society, what was the common instrument of commerce?

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

4. What does the division of labor do for a manufacturer?

5. What was the original price, the first purchase cost, for all things?

Short Essay Questions

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

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

3. Why was the assaying of precious metals originally a problem?

4. 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.

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

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

7. Give one example of how a tribe of hunters or shepherds would begin the process of division of labor?

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

9. Who commonly makes improvements in manufacturing machinery?

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

(see the answer keys)

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