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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. Where are the separation of different trades and employments from one another generally found?
(a) In those countries which enjoy the highest degree of industry and improvement.
(b) In those countries which have yet to pursue industry and improvement.
(c) In those countries which are have completed their industry and improvement.
(d) In those countries which have the least degree of industry and improvement.

2. What happens if the supply of a commodity is greater than the demand for it?
(a) The price rises.
(b) The commodity goes to waste.
(c) The merchant returns the goods.
(d) The price drops.

3. What is a consequence of replacing gold money with paper money?
(a) It allows for more buying power.
(b) It promotes a new industry.
(c) It costs less both to erect and to maintain.
(d) It allows for increased wages.

4. What kind of revenue constitutes the whole annual produce of the a country's land and labor?
(a) Production revenue.
(b) Consumption revenue.
(c) Net revenue.
(d) Gross revenue.

5. 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) Gem stones.
(c) Gold.
(d) Labor.

Short Answer Questions

1. Which is not a reason for the increase of the quantity of work under division of labor?

2. Which Mediterranean country seems to have been the first in which either agriculture or manufacturers were cultivated and improved to any considerable degree?

3. By the nature of things, what must there be before the division of labor in a particular job?

4. How many general types of fixed capital are there?

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

Short Essay Questions

1. 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?

2. Why was the assaying of precious metals originally a problem?

3. Why was the weighing of precious metals a problem with their use in their crude state?

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

5. In all countries, why are precious metals the preferred means of commerce?

6. Explain a farmer's fixed and circulating capital.

7. How do fixed capital and circulating money resemble each other?

8. Why do commercial nations use coins of different kinds of metals?

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

10. What are the two possible origins of the propensity to truck, barter, and exchange one thing for another?

(see the answer keys)

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