7028

WESTERN MINDANAO ADVENTIST Dumingag, Zamboanga del Sur

ACADEMY Philippines
“The School for Better Future”
APPLIED ECONOMICS
Semi-Final Examination
September 19, 2019
Name: _______________________________________________ SCORE: ____________
Grade/Section: _______________________
Test I. Matching Type. Directions: Read carefully. Match the terms with the definition. Write the letter on the space provided.
STRICTLY NO ERASURES!
COLUMN A COLUMN B
____1. A consumer’s plan for receiving and using income a. absolute advantage
____2. A tax as a percentage of income remains constant as income increases b. Junk bonds
____3. A tax as a percentage of income decreases as income increases c. budget
____4. A tax as a percentage of income increases as income increases d. Corporate bonds
____5. Using savings in a way that earns income to create a return e. World price
____6. An exchange rate determined by the forces of supply and demand without government f. Foreign aid
Intervention g. Regressive taxation
____7. A choice to buy or not buy a product so that your satisfaction is the greatest possible h. Ability to pay tax principle
Per dollar spent i. rational consumer choice
____8. The percentage of each additional peso of a taxpayer’s income that goes to taxes j. Benefits received tax
principle
____9. Indicates who actually bears the burden of a tax k. Productivity
____10. A financial organization that accepts funds from many people and invest them in l. Brain drain
A variety of stocks m. Money
____11. A developing country’s loss of educated migrants to industrial market countries n. proportional taxation
____12. Foreign money needed to carry out international transactions o. mutual fund
____13. A current medium of exchange p. consumer
____14. The value of output produced by a resource q. investing
____15. A development strategy that emphasizes replacing imports with domestic production r. progressive taxation
____16. Investing in a wide variety of stocks s. foreign exchange
____17. Those with a greater ability to pay should pay more of a tax t. diversification
____18. Those who receive more benefits from a government program funded by a tax should u. Fixed exchange rate
Pay more of that tax v. Tax
____19. A tax collected from Filipinos and is imposed on different sources of income w. Flexible exchange rate
____20. Are the source of most government revenue x. marginal tax rate
____21. Funds that are marketed by salespeople who receive commission of roughly 6% y. load funds
Of the amount invested z. Tax incidence
____22. They try to buy low and sell high. They aim to gain profit from market fluctuations aa. Import substitution
____23. A private nonprofit and nonstick organization that aims to raise capital through the bb. Bilateral aid
Issuance of new securities cc. PSE
____24. Bonds issued by businesses that are in financial trouble dd. Personal income tax
____25. Ability to make something using fewer resources than other producers require

Test II. MULTIPLE CHOICES. Directions: Cross out the best letter of your answer. STRICTLY NO ERASURES!
1. Before you buy a product, you should ask yourself each of the following questions except?
a. Do I really need this product?
b. Is this the best deal available for this product?
c. Can I afford to pay for this product?
d. Will this product impress my friends?
2. When you comparison shop, you should choose the product that you think _____________
a. Has the best value per money spent
b. Has the best quality
c. Has the best style or appearance
d. Has the lowest price
3. In general, the greater the risk you take when make an investment, the small the amount you expect to earn from it.
a. True
b. False
4. All financial planners must pass a qualifying exam and be licensed by the national government.
 a. True b. False
5. A decision use to cash to make a purchase is always better for a consumer than a decision to use credit.
a. True b. False
6. Which of the following is an example of the benefits received tax principle?
a. The excise tax on cigarettes
b. A tariff on imported automobiles
c. A sales tax on purchases of new clothing
d. The tax on each gallon of gasoline
7. Income and property taxes usually rely on what approach?
a. Benefits received principle
b. Ability to pay tax principle
c. Proportional taxation
d. Progressive taxation
8. High marginal tax rates encourage people to work and earn additional income.
a. True b. False
9. If a tax structure is progressive and you know that Tom pays P1000 on his P10, 000 income, then Alicia, who earns P30, 000 must pay
_________?
a. More than P3,000 in tax
b. Less than P3,000 in tax
c. Exactly P3,000 in tax
d. More than P4,000 in tax
10. Public goods are more complicated than private goods in terms of what goods should be produced, in what quantities, and who
should pay.
a. True b. False
11. A one month budget worksheet includes predictions of your expected income, saving and spending for a month.
a. True b. False
12. A corporate bond represents partial ownership of a corporation.
a. True b. False
13. Which of the following people should invest in stocks through a mutual fund?
a. Debbie, who has a little money to invest in a corporation
b. Keisha, who is a professional full service stockbroker
c. Harold, who enjoys following the stock market and choosing stocks he likes
d. Jose, who has no money to invest
14. People who cannot afford to lose the money they invest should avoid corporate bonds.
a. True b. False
15. Among ASEAN countries, Philippines is the ___ highest income tax rates behind Vietnam and Thailand.
a. 2
b. 4
c. 3
d. 5
Test III. Essay
1. Why is difficult for people to agree on a tax structure that is fair for all? (5 sentences only) 5 points
2. What causes the market price of a particular stock to change? (3 sentences only) 5 points