View a FREE sample

This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. Why are new machines more likely to be invented under division of labor?
(a) Men have more time to experiment with various options and potential improvements.
(b) Men are more likely to discover more efficient methods of production when their entire focus is directed towards a single step of the process.
(c) New machines are required when labor has been divided.
(d) Division of labor promotes speculation and new ideas to be tried.

2. What are the three original sources of all revenue?
(a) Commerce, taxes, and trade.
(b) Wages, profit, and rent.
(c) Profit, taxes, and commerce.
(d) Trade, taxes, and wages.

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

4. What word expressed the weight or quantity of metal contained in the first coins?
(a) Fineness.
(b) Purity.
(c) Denomination.
(d) Stamp.

5. Which country's inland navigation caused its early improvement?
(a) Turkey.
(b) Egypt.
(c) Italy.
(d) Greece.

6. What is the nominal price of a commodity?
(a) The net profit for the seller.
(b) The price of its raw materials.
(c) The labor it took to produce it.
(d) The price asked for it.

7. What does the text say about the difference of the natural talents in men?
(a) That talent is natural and cannot be cultivated or improved.
(b) That all men have unique talents unto themselves.
(c) That they are not really that different.
(d) That they are so different as so never to be changeable.

8. 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 barter , or by charity.
(b) By labor, by charity, or by ingenuity.
(c) By ingenuity, by treaty, or by purchase.
(d) By treaty, by barter, or by purchase.

9. What is the only universal, only accurate measure of value, only standard by which we can compare the values of different commodities at all times and at all places?
(a) Labor.
(b) Silver.
(c) Gem stones.
(d) Gold.

10. What was the common instrument of commerce among the ancient Romans?
(a) Iron.
(b) Gold.
(c) Silver.
(d) Copper.

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

12. Commonly, why does man #1 help man #2?
(a) Because man #1 sees man #2's genuine need for help.
(b) Because man #1 derives personal benefit from helping man #2.
(c) Because man #1 has a capacity for benevolence.
(d) Because man #2 has agreed to pay man #1.

13. When was the Bank of England incorporated?
(a) The 27th of July, 1693.
(b) The 27th of July, 1695.
(c) The 27th of July, 1696.
(d) The 27th of July, 1694.

14. What kind of revenue constitutes the whole annual produce of the a country's land and labor?
(a) Net revenue.
(b) Production revenue.
(c) Gross revenue.
(d) Consumption revenue.

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

Short Answer Questions

1. How many times more goods on a broad-wheeled wagon can be carried from London to Edinburgh by water-carriage in the same amount of time?

2. What does the author consider to be a wasteful use of gold?

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

4. Labor measures the value of price which resolves itself into labor, rent, and what one other thing?

5. Under division of labor, what generally supplies a man's wants?

(see the answer keys)

This section contains 563 words (approx. 2 pages at 300 words per page) View a FREE sample