Quiz: On the Principles of Political Economy and Taxation

14 questions drawn at random. Score 80% for a silver medal.

1. What new chapter does Ricardo announce for the third edition? A chapter on colonial trade A chapter on the rent of mines A chapter on the Poor Laws A chapter on machinery
2. Which historical puzzle does Ricardo think his point about taxes and relative prices explains? Uneven price rises under the bank-restriction Why Holland’s manufactures and fisheries declined Why corn prices fell so sharply after the peace of 1815 Why the taille ruined French agriculture under the old kings
3. For which commodities does Ricardo accept that price follows the proportion of supply to demand? Gold and silver Monopolised commodities Manufactured goods under competition Corn
4. Which goods does Ricardo say have a value determined by scarcity alone? Gold and silver, the precious metals used as money Corn and the other raw produce of the soil Fine cotton goods and woollens made by hand Rare statues and pictures, scarce books and coins
5. How, according to Ricardo, is capital usually moved from a less to a more profitable trade? By lending from bankers and the moneyed class shifting between trades By workers moving from one trade to another By manufacturers closing their businesses and starting afresh in other trades By government direction of investment
6. What does Ricardo say caused the crisis of 1797? Over-issue of notes by the country banks of England A failed harvest A panic among the timid part of the community The Bank’s large advances to Pitt’s government during the war
7. What is the immediate effect of agricultural improvements on rent? They have no effect on rent They abolish rent altogether They lower rent They raise rent
8. What is Ricardo’s view of utility in relation to exchangeable value? It is essential to value but not its measure It determines value for manufactured goods only It has nothing to do with exchangeable value It is the measure of exchangeable value
9. What spending by the rich does Ricardo say labourers should prefer? Saving rather than any spending Luxuries such as furniture and fine clothes rather than servants Foreign travel The support of menial servants rather than luxuries
10. In Ricardo’s example, what happens to the exchange of deer for salmon when wages rise in both occupations? Salmon become dearer than deer It stays at one deer for two salmon Deer become dearer than salmon Both rise in value against gold
11. When, according to Ricardo, is a currency in its most perfect state? When gold and silver coin are both legal tender at a fixed ratio When it consists wholly of gold coin of full weight and fineness When the Bank of England issues notes freely, unchecked by convertibility When it is all paper, of equal value with the gold it represents
12. What does Ricardo now conclude about the labouring class’s belief that machinery is often detrimental to them? It is true only of the agricultural labourers It applies only during wars It agrees with sound political economy It is founded on mere prejudice and a misunderstanding of trade
13. What is the relation between rent and the price of corn, according to Ricardo? Rent lowers the price of corn Corn is high because rent is paid Rent and the price of corn are wholly unconnected with each other Rent is paid because corn is high, not the reverse
14. How does Ricardo characterise rent in his reply to Malthus? A creation of wealth, but not of value A deduction from wages A creation of value, but not of wealth A clear gain and new creation of riches

0 of 14 answered