![]() |
Name: _________________________ | Period: ___________________ |
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. What becomes the common instrument of commerce when barter ceases?
(a) Gold.
(b) Gem stones.
(c) Money.
(d) Silver.
2. What opens an even more extensive market to every sort of industry?
(a) Improved inland transporation.
(b) Water-carriage.
(c) Land-carriage.
(d) Faster horses.
3. How are a philosopher and a street porter the same?
(a) Their goals for life would be very similar.
(b) Their desire and motivations would be very similar.
(c) Their family life would be very similar.
(d) Their first six years of life would have been very similar.
4. What is the real price of a thing a person wants?
(a) The labor it takes to pay for it.
(b) The toil and trouble of acquiring it.
(c) The price marked as its cost.
(d) The money it takes to purchase it.
5. What kind of capital is employed in the improvement of land and in the purchase of useful machines and instruments of trade?
(a) Circulating capital.
(b) Improving capital.
(c) Instrumental capital.
(d) Fixed capital.
6. What commodity would a butcher be unlikely to exchange for?
(a) Bread.
(b) Meat.
(c) Cloth.
(d) Wine.
7. What is the intention of the fixed capital?
(a) To increase the speed of manufacturing.
(b) To decrease the number of workmen needed.
(c) To increase the productive powers of labour.
(d) To decrease the overhead cost of manufacturing.
8. Commonly, why does man #1 help man #2?
(a) Because man #1 sees man #2's genuine need for help.
(b) Because man #2 has agreed to pay man #1.
(c) Because man #1 has a capacity for benevolence.
(d) Because man #1 derives personal benefit from helping man #2.
9. What does the author consider to be a wasteful use of gold?
(a) Picture frames.
(b) Goblets.
(c) Flatware.
(d) Gilding and plating.
10. What is a person's revenue equal to?
(a) The quantity of comsumable goods he can purchase.
(b) The wages he is paid.
(c) The money left over after buying his necessities.
(d) The stock that is put into reserve.
11. In some measure, every man in a growing commercial society becomes what?
(a) A scholar.
(b) A farmer.
(c) A tinker.
(d) A merchant.
12. When was the Bank of England incorporated?
(a) The 27th of July, 1695.
(b) The 27th of July, 1693.
(c) The 27th of July, 1694.
(d) The 27th of July, 1696.
13. What kind of revenue is made from the interest on money?
(a) Taxable revenue.
(b) Derivative revenue.
(c) Renewable revenue.
(d) Laborless revenue.
14. What kind of rent comes to the landlord after deducting the expense of management, of repairs, and all other necessary charges?
(a) Gross rent.
(b) Consumption rent.
(c) Net rent.
(d) Production rent.
15. Where are the separation of different trades and employments from one another generally found?
(a) In those countries which have the least degree of industry and improvement.
(b) In those countries which enjoy the highest degree of industry and improvement.
(c) In those countries which are have completed their industry and improvement.
(d) In those countries which have yet to pursue industry and improvement.
Short Answer Questions
1. What kind of rent is paid by a farmer?
2. What reduced the value of gold and silver in Europe in the 16th century?
3. What does the text say about the difference of the natural talents in men?
4. Who are most likely to make improvements upon or invent new machines for manufacture?
5. What is another name for paper money?
This section contains 606 words (approx. 3 pages at 300 words per page) |
![]() |