APPLIED ECONOMICS

1st Summative Test (2ND Semester)

Name: _____________________________________________ Year/ Section: __________________ Score: __________

Test I: MULTIPLE CHOICE
Directions: Read and analyze the statement carefully. Choose only the letter of the correct answer and write your answer on the
space provided before the number.
_____ 1. It refers to the product or anything that a person spends their money on with the hope that it will give them income in
the future.
A. Investment B. Taxes C. Minimum Wage D. Rentals
_____ 2. It is a property from which the owner received payment from the occupants, known as tenants, in return for occupying
or using the property.
A. Investment B. Taxes C. Rentals D. Minimum Wage
_____ 3. This refers to the minimum amount of remuneration that an employer is required to pay wage earners for the work
performed during a given period.
A. Investment B. Minimum Wage C. Taxes D. Rentals
_____ 4. It is a mandatory financial charge or some type of levy imposed by the government organization in order to fund
various public expenditures.
A. Taxes B. Rentals C. Investment D. Minimum Wage
_____ 5. It is expected to be enough for the ordinary workers to afford things that he/she buys.
A. Investment B. Taxes C. Investment D. Rentals
_____ 6. These are inflows for the government and outflows for the firms.
A. Investment B. Minimum Wage C. Rentals D. Taxes
_____ 7. An example of these are assets that the company intends to hold for more than one year.
A. Minimum Wage B. Rentals C. Taxes D. Investment
_____ 8. It refers to the amount that an employee is entitled to and cannot be reduced by collective agreement of an individual
contract.
A. Rentals B. Taxes C. Investment D. Minimum Wage
_____ 9. It refers to using one’s savings in a way that earns a return.
A. Rentals B. Taxes C. Investment D. Minimum Wage
_____ 10. It refers to purchasing shares of corporate stock hoping to earn a return.
A. Rentals B. Taxes C. Investment D. Minimum Wage
_____ 11. It is a financial inflow to the government but an outflow from the firm and is mandatory, failure to pay so is
punishable by law.
A. Interest B. Minimum Wage C. Taxes D. Investment
_____ 12. It is a law that establishes a minimum amount that an employer can pay a worker for one day of labor.
A. Civil Code of the Philippines C. Minimum Wage Law
B. Rent Control Act in the Philippines D. Tariff and Customs Code
_____ 13. It is a property used by the occupants, also known as tenants, in which owner receives payments of from using the
property.
A. Taxes B. Rentals C. Investments D. Interest Rate
_____ 14. It is the art of making an idea into a business.
A. Entrepreneurship B. Marketing C. Investing D. Loan
_____ 15. It refers to the person who converts idea into a business.
A. Investor B. Debtor C. Creditor D. Entrepreneurship
_____ 16. It refers to an asset or something that you acquire with a goal of having a return from it in a form of income.
A. Taxes B. Investment C. Interest D. Rental
_____ 17. These are taxes that are imposed on the following: alcohol, tobacco, petroleum products, automobiles, mineral
products, and non-essential goods such as jewelry and precious stones, perfumes, yachts and other sport vessels.
A. Community Tax B. Excise Tax C. VAT D. Documentary Stamp
_____ 18. The regular _________ is 30% on net taxable income.
A. Corporate Income Tax B. Community Tax C. Documentary Stamp Tax D. VAT
_____ 19. It is required for certain documents, transactions or instruments specified in the tax code.
A. Documentary Stamp Tax B. Corporate Income Tax C. Community Tax D. VAT
_____ 20. It refers to purchasing shares of corporate stock hoping to earn a return.
A. Investment B. Rentals C. Taxes D. Minimum Wage