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This quiz consists of 5 multiple choice and 5 short answer questions through End of Book 4 & Book 5, Chapter 1.

Multiple Choice Questions

1. What is a consequence of replacing gold money with paper money?
(a) It promotes a new industry.
(b) It allows for more buying power.
(c) It costs less both to erect and to maintain.
(d) It allows for increased wages.

2. What can be said for division of labor for all kinds of manufacturing?
(a) Machines replace many workmen who are moved to other jobs.
(b) Division of labor does not affect the quantity of products manufactured.
(c) The quality of products manufactured are improved greatly.
(d) Many individuals and processes come together to complete a product.

3. What is true of both a farm and a retail trade?
(a) Each are confined to a precise spot.
(b) Each must invest their fixed capital.
(c) Each are suspectible to interest rates.
(d) Each are a mobile business.

4. How important is it that the merchant whose capital exports the surplus produce of any society be a native or a foreigner?
(a) It's importance depends on a number of factors.
(b) It is of little importance.
(c) It is of no importance at all.
(d) It is of utmost importance.

5. How many general types of fixed capital are there?
(a) Five.
(b) Four.
(c) Two.
(d) Three.

Short Answer Questions

1. What does a man expect when he employs his stock as capital?

2. What happens when the quantity of silver increases?

3. What does a North American colonial artificer do when he has acquired a little more stock than is necessary for carrying on his own business in supplying the neighboring country?

4. What kind of revenue is made from the interest on money?

5. Under what circumstance would every man have to perform exactly the same duties and do exactly the same work?

(see the answer key)

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