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This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

1. 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) Silver.
(b) Labor.
(c) Gold.
(d) Gem stones.

2. Labor measures the value of price which resolves itself into labor, rent, and what one other thing?
(a) Profit.
(b) Demand.
(c) Wages.
(d) Tax.

3. What commodity would a butcher be unlikely to exchange for?
(a) Bread.
(b) Meat.
(c) Cloth.
(d) Wine.

4. What is one characteristics of a fixed capital?
(a) It never changes masters.
(b) It always changes masters.
(c) It goes back and forth between masters.
(d) It has no real master.

5. Under what circumstance would every man have to perform exactly the same duties and do exactly the same work?
(a) If there were no organized society.
(b) If there were no truck, barter, and exchange.
(c) If there were no difference of talent.
(d) If there were no manufacturers of commodities.

Short Answer Questions

1. What is the intention of the fixed capital?

2. What is another name for paper money?

3. Where are the separation of different trades and employments from one another generally found?

4. What was the common instrument of commerce among the ancient Spartans?

5. What is the real price of a thing a person wants?

Short Essay Questions

1. How does the market limit the division of labor?

2. Why did the first recorded civilizations dwell on the coast of the Mediterranean Sea?

3. In every society or neighborhood, how is the ordinary or average rate both of wages and profit regulated?

4. How does private property change the land of any country?

5. Circulating capital which affords a revenue is composed of four parts. What are those four parts?

6. What would happen at the end of a war, if the enemy confiscated the gold upon which the losing country's paper money was based?

7. What two advantages did the banking companies of Scotland gain by dealing only with men who had frequent and regular operations with them?

8. What is the difference between the real price of a commodity and the nominal price of a commodity?

9. Why is it difficult to determine the exchange value between two different kinds of labor?

10. How does the multiplication of the productions of all the different arts, in consequence of the division of labor in a well-governed society, extend opulence to the lowest ranks of the people?

(see the answer keys)

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