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

Multiple Choice Questions

1. Where do a merchant's or retailer's profits come from?
(a) From what they sell.
(b) From what they both buy and sell.
(c) From what they save.
(d) From what they buy.

2. Which profession is not an example of an artificer?
(a) Wheel-wrights.
(b) Tanners.
(c) Carpenters.
(d) Farmers.

3. What comes before convenience?
(a) Subsistence.
(b) Luxury.
(c) Maintenance.
(d) Opulence.

4. Where should the capital of a manufacturer generally reside?
(a) At a location close to his raw materials.
(b) At the most productive location.
(c) At the cheapest location.
(d) At a location within his country.

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

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

7. Who concluded the treaty of commerce between England and Portugal in 1703?
(a) Mr. Menchan.
(b) Mr. Metuel.
(c) Mr. Methuen.
(d) Mr. Melkson.

8. According to the author why, two or three centuries before, were his British ancestors mostly idle concerning industry?
(a) There was no sufficient wage to work in industry.
(b) There was no sufficient industry to work in.
(c) There was no sufficient encouragement to industry.
(d) There was no sufficient encouragement to earn a wage.

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) 12%.
(c) 11%.
(d) 10%.

10. What is true of the capital employed in agriculture and in the retail trade of any society?
(a) They must always earn within that society.
(b) They must always do commerce within that society.
(c) They must always reside within that society.
(d) They must always produce within that society.

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

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

13. What do hoarders fear in a rude state of society with no great mercantile or manufacturing capital?
(a) Extravagant expenses.
(b) Plunder from the government.
(c) Plunder from their peers.
(d) Necessary expenses.

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

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

Short Answer Questions

1. During the sixteenth century, who claimed all of America as its own?

2. What must defray the expense of defense and government?

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

4. What are the two kinds of labor?

5. What are the natural consequences of the law of primogeniture?

(see the answer keys)

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