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

Multiple Choice Questions

1. How does division of labor affect the time required for the manufacturing process?
(a) It lengthens the time of production while producing a better product.
(b) It reduces the time for a product to be completed.
(c) It lengthens the overall time of production.
(d) It reduces the time between a workman's different tasks.

2. The laborer is rich or poor, is well or ill rewarded, in proportion to what?
(a) The real price of his labor.
(b) The real price of his purchases.
(c) The nominal price of his purchases.
(d) The nominal price of his labor.

3. Which is not a reason for the increase of the quantity of work under division of labor?
(a) The increase of the workmen's dexterity.
(b) The employment of more workmen.
(c) Time efficiencies.
(d) The invention of machines which enable one man to do the work of many.

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

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

6. What is a person's revenue equal to?
(a) The quantity of comsumable goods he can purchase.
(b) The stock that is put into reserve.
(c) The money left over after buying his necessities.
(d) The wages he is paid.

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

8. What kind of revenue remains free to a country after deducting the expense of maintaining their fixed circulating capital?
(a) Consumption revenue.
(b) Gross revenue.
(c) Net revenue.
(d) Production revenue.

9. What is the common instrument of commerce and exchanges in some parts of the coast of India?
(a) Shells.
(b) Salt.
(c) Sugar.
(d) Tobacco.

10. What was the original price, the first purchase cost, for all things?
(a) Gold.
(b) Labor.
(c) Barter.
(d) Exchange of goods.

11. What is the intention of the fixed capital?
(a) To increase the speed of manufacturing.
(b) To increase the productive powers of labour.
(c) To decrease the overhead cost of manufacturing.
(d) To decrease the number of workmen needed.

12. What regulates the price of every particular commodity?
(a) Labor and profit.
(b) Labor and wages.
(c) Profit and wages.
(d) Supply and demand.

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

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

15. What is the sole end and purpose both of the fixed and circulating capitals?
(a) To maintain and augment the stock which may be traded for needed goods.
(b) To maintain and augment the stock which may be sold for profit.
(c) To maintain and augment the stock which may be used to expand the business.
(d) To maintain and augment the stock which may be reserved for immediate consumption.

Short Answer Questions

1. Which occupation requires a great town?

2. What kind of revenue constitutes the whole annual produce of the a country's land and labor?

3. What is true about the amount of metal coins which circulate in a society?

4. What is the ultimate and real standard by which the value of all commodities can, at all times and places, be estimated and compared?

5. What becomes the common instrument of commerce when barter ceases?

(see the answer keys)

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