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

Multiple Choice Questions

1. How do most men choose to employ their capitals?
(a) Foreign trade.
(b) Improvement of land.
(c) Agriculture.
(d) Manufactures.

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

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

4. Who besides productive and unproductive laborers are all equally maintained by the annual produce of the land and labor of the country?
(a) Those who are not citizens of the country.
(b) Those who labor in another country.
(c) Those who labor only for themselves.
(d) Those who do not labor at all.

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

6. How are almost all loans made?
(a) In silver.
(b) In goods.
(c) In gold.
(d) In paper money.

7. What is the principal cause of the rapid progress of the American colonies?
(a) Nearly their entire capitals are employed in commerce.
(b) Nearly their entire capitals are employed in land.
(c) Nearly their entire capitals are employed in agriculture.
(d) Nearly their entire capitals are employed in settlements.

8. Where is the wool of southern Scotland manufactured?
(a) Cork.
(b) Yorkshire.
(c) London.
(d) Edinborough.

9. What was the common rate of interest on borrowing through the greater part of Europe before the discovery of the West Indies?
(a) 9%.
(b) 11%.
(c) 10%.
(d) 12%.

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

11. What is the old subsidy rule?
(a) By act of parliment, duties are imposed only on foreign goods.
(b) Drawbacks must preserve the natural division and distribution of labor in society.
(c) Any particular employment cannot draw a greater share of capital to hinder they duty from other employments.
(d) Merchants were allowed to draw back half their duty on exported goods.

12. As capital increases in any country, what happens to the profits which can be made by employing them ?
(a) They decrease.
(b) They remain the same.
(c) They increase.
(d) They promote growth.

13. Where do a farmer's or manufacturer's profits come from?
(a) From their stock.
(b) From their reserve.
(c) From what they produce.
(d) From their surplus.

14. What has increased in countries where interest on borrowed money has been prohibited by law?
(a) Money is borrowed from other countries.
(b) Capital is stagnant.
(c) Usury has increased.
(d) Industry does not grow.

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

Short Answer Questions

1. What determines the ordinary market price of land?

2. In Great Britain, what is inserted into the annual land and malt taxes?

3. What was one consequence when the German and Scythian nations overran the western provinces of the Roman empire?

4. What is true of the capital employed in agriculture and in the retail trade of any society?

5. At the time the book was written, what commodity regulated the value of all other home-made commodities?

(see the answer keys)

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