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This quiz consists of 5 multiple choice and 5 short answer questions through Book 2, Chapter 5.

Multiple Choice Questions

1. What is true about the amount of metal coins which circulate in a society?
(a) They have no relation to the revenue of the society.
(b) They are equal to the revenue of the society.
(c) They can never be equal to the revenue of the society.
(d) They fluctuate the revenue of the society.

2. What is true of the capital employed in agriculture and in the retail trade of any society?
(a) They must always produce within that society.
(b) They must always reside within that society.
(c) They must always do commerce within that society.
(d) They must always earn within that society.

3. What reduced the value of gold and silver in Europe in the 16th century?
(a) The discovery of mines in Peru.
(b) The discovery of mines in America.
(c) The depletion of mines in America.
(d) The depletion of mines in Europe.

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

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

Short Answer Questions

1. What determines the ordinary market price of land?

2. What does the interest rate on borrowed money need to be to prevent usury?

3. How did the idea of division of labor come about?

4. What happens if the supply of a commodity is greater than the demand for it?

5. As capital increases in any country, what happens to the profits which can be made by employing them ?

(see the answer key)

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