General Education

Basic Economics with Agrarian Reform

PART II ANALYZING TEST ITEMS

(Economics)

1. A charge imposed for purposes of regulation.

a. Tax c. Asssessment
b. Penalty d. License

2. A liability arising from a contract and maybe paid in kind.

a. License c. Debt
b. Penalty d. Assessment

3. It refers to all the funds of income derived by the government.

a. Subsidy c. Tariff
b. Revenue d. License

4. The term is used to describe duties payable on goods, whether imported or exported.
a. Subsidy c. Tariff
b. Revenue d. License
c.
5. It is a pecuniary aid granted by the government deemed beneficial to the public.
a. Subsidy c. Tariff
b. Revenue d. Assessment
c.
6. Situs of Taxation means
a. Place of taxation c. Venue of taxation
b. Object of taxation d. Extent of taxation

7. A poll tax maybe property levied upon

a. Persons c. Donations
b. Property d. Rent

8. The used by the taxpayer of illegal fraudulent means to defeat or lessen the payment of a tax.
a. Tax evasion c. Tax avoidance
b. Tax deduction d. Tax credits

9. The exploitation by the taxpayer of legally permissible alternative tax or methods of assessing taxable property or
income.
a. Tax evasion c. Tax avoidance
b. Tax deduction d. Tax credit

10. For purposes of taxation, it means all wealth flows into the taxpayer other than as a mere return capital.
a. Sale c. Income
b. Donation d. Privilege

11. The net income or the entire income realized in one taxable year.
a. Privilege tax c. Income tax
b. Professional tax d. Estate tax

12. A kind of tax on the right of the deceased person to transmit his estate to hie lawful heirs of beneficiaries.
a. Estate tax c. Privilege tax
b. Inheritance tax d. Transfer tax

13. An act of liberality whereby a person disposes gratuitously a thing or right in favor of another who accept it.
a. Donation c. Inheritance
b. Gift d. Transfer

14. A tax imposed on the transfer without consideration of property between two or more persons who are living at the
time the transfer made.
a. Donor’s tax B. Gift Tax c. Inheritance tax d. Transfer tax
15. It is a uniform tax imposed on sale of goods or services as they pass along the production and distribution chain.
a. Exercise tax c. Sales tax
b. Value-added tax d. Tariff tax

16. It implies a divestiture of property without compensation.

a. Punishment c. Enforcement
b. Forfeiture d. Penalty

17. It is an amount imposed by law as addition to the main tax in case of delinquency.
a. Surcharge c. Exercise tax
b. Added tax d. Fee

18. The seizure by the government of personal property tangible or intangible, intangible to intangible, to enforce the
payment of taxes.
a. Distraint c. Punishment
b. Levy d. Assessment

19. A summary administrative remedy which refers to the seizure of real property to enforce the payment of taxes.
a. Distraint c. Punishment
b. Levy d. Assessment

20. The power of taxation is primarily and exclusively exercised by

a. President c. Supreme Court
b. Congress d. All of the Above

21. Economics is said to be the ‘queen of the social Sciences’. Which of the following is the original meaning of
Economics?
a. Political economy c. Social economics
b. Household management d. Distribution

22. Economics deals with the utilization of resources. How do you describe these resources?
a. Abundant c. Human
b. Natural d. Scarce

23. Which of the following is the primary objective of economics?

a. To provide basic necessities to man.
b. To satisfy human wants and needs.
c. To provide exports to developing countries
d. To provide goods and services for the markets

24. Economics has a split personality. This means that this is

a. Does not know what to deal with
b. Is both physical science and social science
c. Is not yet fully developed as a discipline
d. Satisfies two sets of human wants physical and mental

25. Which of the following sciences does economics relate with if it tries to understand previous economic policies?
a. Political Science
b. Sociology
c. History
d. Chemistry

PART III – ENHANCING TEST TAKING SKILLS (Economics)

1. One of the major functions of taxes is to increase real government expenditures that can be simply stated as:
a. to raise revenues
b. to secure economic price stability
c. to promote economic development

2. The policy of the state to pursue a Comprehensive Agrarian Reform Program is clearly stated in its policy to:
a. promote human rights
b. establish owner cultivatorship of economic size farms
c. move the nation toward sound urban development and industrialization
3. This is a form of taxation that is collected from a taxpayer based only on her/his income or wealth
a. indirect tax c. direct tax
b. sacrifice tax

4. The retention limit to be awarded to each child of the landowner is

a. three hectares c. five hectares
b. four hectares

5. Which of the following are not beneficiaries of CARP?

a. agricultural lessees and share tenants
b. seasonal farm workers
c. non-regular farm workers

6. It includes all revenues of the government except the income of the government owned and controlled
corporations coming from the private sector?
a. Subsidy c. expenditure
b. Taxation

7. Demand is the desire or need of human being to consume a good or avail of a service while____ is the alternative
quantities offered for sale of different prices.
a. Elasticity c. equilibrium
b. Supply

8. The type of cooperative which promote thrift among members and create funds in order to grant loans for
productive and provident purposes is called
a. Credit Cooperative c. Service cooperative
b. Productive Cooperative d. Consumers Cooperative

9. Which of the following describes marketing cooperatives?

a. They distribute products of members to both members and non-members
b. They coordinate with other cooperatives in marketing products of members
c. They undertake joint production of goods whether agricultural or industrial
d. They engage in the supply of production inputs to members and marked their products

10. The members of the federation of cooperatives are

a. primaries c. natural persons
b. secondaries d. primary/secondary cooperatives

11. The comprehensive Agrarian Reform Law of 1988 that the retention limits of landowner is
a. 5 hectares c. 8 hectares
b. 10 hectares d. 7 hectares

12. How many hectares should be awarded to each child of the landowner?
a. 2 hectares c. 5 hectares
b. 6 hectares d. 3 hectares

13. The Comprehensive Agrarian Reform Law of 1988 is also known as

a. Republic Act No. 6662 c. Republic Act No. 6657
b. Republic Act No. 6673 d. Republic Act No. 6854

14. An item or value upon which the tax is to be imposed is called

a. Tax b. revenue c. income d. tax base

15. If a taxpayer is married, he or she claim a tax exemption of

a. PhP 50,000 c. PhP10,000
b. Php 20,000 d. PhP15,000

16. What does this principle of equity provide?

a. Taxpayers should be taxed according to the professions and status in life.
b. Taxpayers regardless of income should pay the same amount of tax
c. Taxpayers that are similarly situated in life should be taxed similarly
d. Taxpayers who do not have permanent jobs should pay less tax
17. Taxable income is derived from
a. Net income less additional exemption
b. Gross compensation income less withholding tax
c. Gross income less total exemptions
d. Gross income less personal exemptions

18. This is a type of cooperative in which members undertake joint productive activities
a. Producers cooperative c. Service cooperative
b. Consumers cooperative

19. It is an integrated measure designed to eliminate obstacle to economic and social development arising out of
defects in the agrarian structure
a. Agrarian Reform c. CARP
b. Land Reform

20. It occurs whenever the government spends more than it has collected in taxes.
a. Taxation c. Fiscal deficit
b. User Fees

21. These cooperatives provide vital service to the general public such as transportation, health and housing service.
a. Consumers Cooperatives c. Credit cooperatives
b. Service Cooperatives

22. Expenditures is the sum total of all expenditures by the government while___is a form of financial support directly
provided by the government to specific individual groups.
a. taxation c. spending
b. subsidy

23. The lands covered by CARP shall be distributed as much as possible to landless residents of the same barangay
or municipality, which among the following is the first priority?
a. seasonal farm workers
b. agricultural lessees and share tenants
c. regular farm workers

24. Fiscal deficit often occurs when

a. Government spends less than it has collected in taxes
b. Government spends more than it has collected in taxes
c. Government spends equal what it has collected in taxes

25. The law which create the Cooperative Development Authority

a. R.A 6938 c. R.A 6983
b. R.A 6939 d. R.A. 6993