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

Multiple Choice Questions

1. What is the third part of capital use in every growing society?
(a) Manufacturers.
(b) Agriculture.
(c) Inland commerce.
(d) Foreign commerce.

2. What does an artificer who lives where there is either no uncultivated land, or none that can be had upon easy terms, do when he has acquired a little more stock than is necessary for carrying on his own business in supplying the neighboring country?
(a) He reinvests his stock into his business.
(b) He invests his stock in more workmen
(c) He seeks to sell in distance towns.
(d) He buys land for improvement.

3. How many ways are there to employ capital?
(a) 6.
(b) 4.
(c) 5.
(d) 3.

4. What determines the ordinary market price of land?
(a) The ordinary market rate of product consumption.
(b) The ordinary market rate of gold.
(c) The ordinary market rate of interest.
(d) The ordinary market rate of corn.

5. What must defray the expense of defense and government?
(a) Revenue.
(b) Draw backs fees.
(c) Exports bounties.
(d) Profit.

6. What is a borrower who uses his borrowed stock for immediate consumption?
(a) A prodigal.
(b) An investor.
(c) A merchant.
(d) A laborer.

7. Who established the French colony of St. Domingo?
(a) Farmers and fishermen.
(b) Merchants and traders.
(c) Pirates and freebooters.
(d) Freed slaves and bondmen.

8. What happens to productive labor when the funds for maintaining it are increased?
(a) It receives wage reduction.
(b) It grows less.
(c) It demands wage increase.
(d) It grows greater.

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

10. What regulates the quantity of materials and provisions that a town buys?
(a) The quantity of manufacture they get from those in the country.
(b) The quantity of raw materials they get from those in the country.
(c) The quantity of work the country has to sell.
(d) The quantity of work they sell to those in the country.

11. What was the mint price of eight Paris ounces of gold according to the edict of January 1726?
(a) Seven hundred and ten livres, nine sous, and one denier one-eleventh.
(b) Seven hundred and twenty livres, nine sous, and one denier one-eleventh.
(c) Seven hundred and forty livres, nine sous, and one denier one-eleventh.
(d) Seven hundred and thirty livres, nine sous, and one denier one-eleventh.

12. During the twelve years of the reign of Queen Anne, what was the highest interest rate which could be taken for borrowed money?
(a) 6%.
(b) 4%.
(c) 3%.
(d) 5%.

13. What is the whole annual produce of the land and labor of every country used for?
(a) Tax and employment.
(b) Stock and commerce.
(c) Manufacture and trade.
(d) Consumption and revenue.

14. How does annual consumption compare to annual spending?
(a) More is spent.
(b) They are nearly the same.
(c) There is no correlation.
(d) More is consumed.

15. At the time the book was written, what commodity regulated the value of all other home-made commodities?
(a) Corn.
(b) Textiles.
(c) Wheat.
(d) Wine.

Short Answer Questions

1. What has increased in countries where interest on borrowed money has been prohibited by law?

2. What is the second part of capital use in every growing society?

3. Where should the capital of a manufacturer generally reside?

4. What gave Great Britain the monopoly of supplying the colonies with all the commodities of growth and manufacturing?

5. Where do a farmer's or manufacturer's profits come from?

(see the answer keys)

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