LET REVIEWER – GENERAL EDUCATION

SOCIAL STUDIES (Basic Economics, Taxation and Agrarian Reform)

Direction: Select the letter of the best answer.

1. He is the father of modern economics.

a. Adam Smith
b. Charles P. Kindleberger
c. Simon Kuznets
d. Merton Miller

Answer: a. Adam Smith

2. Which of the following does NOT define economics?

a. It is a branch of science that studies the process of production, consumption and
exchange of wealth.
b. It is a study of mankind in the ordinary business of life.
c. It is the science of Human Behavior as relationship between ends and a scarce means
which have alternative uses.
d. It is a field that is concerned with the allocation (investment) of assets and liabilities over
space and time, often under conditions of risk or uncertainty.

Answer: d. It is a field that is concerned with the allocation (investment) of assets and liabilities
over space and time, often under conditions of risk or uncertainty.

3. According to Gregory Mankiw in his Principle of Economics, which of the following does NOT
describe the Principle of People Face Tradeoffs?
a. To get one thing, we usually have to give up another thing.
b. The opportunity cost of an item is what you give up to obtain them.
c. Making decision requires trading off one goal against another.
d. Efficiency versus Equity

Answer: b. The opportunity cost of an item is what you give up to obtain them.

4. _______ is a fundamental economic problem of having seemingly unlimited human wants in a

world of limited resources.
a. Self-interest

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 b. Scarcity
c. Marginal Changes
d. Social interest

Answer: b. Scarcity

5. Based on the Phillip Curves, the decrease in inflation will result to _______.
a. increase in unemployment.
b. decrease in unemployment.
c. market failure to allocate resources efficiently.
d. decrease in the quantity of money being created.

Answer: a. increase in unemployment.

6. _______ refers to any human activity which is performed in exchange for money or money’s
worth.
a. Job
b. Incentives
c. Economic activity
d. Market economy

Answer: c. Economic activity

7. Which of the following does NOT refer to any type of Economic Activity?
a. It is concerned with the utilization of naturally occurring resources.
b. The natural products of primary activities are processed and changed into other forms.
c. It is the method used by society to produce and distribute goods and services.
d. It does not produce a good but serves as an aid in the process of production.

Answer: c. It is the method used by society to produce and distribute goods and services.

8. _______ represents goods produced in one country and shipped to another country for future
sale or trade, adding to the producing nation's gross output.
a. International Trade
b. Globalization
c. Export

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 d. Import

Answer: c. Export

9. Suppose the supply for product A is perfectly elastic. If the demand for this product increases,
_______.
a. the equilibrium price and quantity will increase
b. the equilibrium price and quantity will decrease
c. the equilibrium quantity will increase but the price will not change
d. the equilibrium price will increase but the quantity will not change

Answer: c. the equilibrium quantity will increase but the price will not change

10. Which of the following is NOT covered by tax?

a. Donation
b. Royalties
c. Charitable institutions
d. Prizes and winnings

Answer: c. Charitable institutions

11. Tax is generally defined as _______.

a. any revenue collected by the government
b. the amount deducted from an employee
c. imposition of additional payment for goods and services
d. a schedule of duties imposed by the government to its citizen

Answer: a. any revenue collected by the government

12. _______ refers to the payment we made to the government through the Bureau of Internal
Revenue.
a. Income tax
b. Compensation and self-employment income

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 c. Estate tax
d. National taxes

Answer: d. National taxes

13. The import and export tariffs are being levied by what government office?
a. Bureau of Internal Revenue
b. Bureau of Customs
c. Philippine Port Authority
d. Department of Budget and Management

Answer: b. Bureau of Customs

14. A Community Tax Certificate is issued by the cities or municipalities to all individuals that have
reached the age of 18 years old and have paid the necessary dues arising from income
derived from the following EXCEPT:
a. business
b. exercise of profession
c. ownership of properties in the area
d. documents and loan agreements

Answer: d. documents and loan agreements

15. Which of the following is NOT an example of local taxes in the Philippines?
a. Tax on Business
b. Professional Tax
c. Income Tax
d. Amusement Tax

Answer: c. Income Tax

16. Which of the following is NOT an example of national taxes in the Philippines?
a. Capital Gains Tax
b. Documentary Stamp Tax
c. Value-added Tax
d. Tax on Transfer of Real Property Ownership

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Answer: d. Tax on Transfer of Real Property Ownership

17. _______ is a document issued by the barangay for government transactions such as when
applying for business permit within the city or municipality.
a. Cedula
b. Barangay Clearance
c. Barangay ID
d. Documentary Stamp

Answer: b. Barangay Clearance

18. The Tax Reform for Acceleration and Inclusion (TRAIN) Law is the implementation of
_______.
a. Republic Act 10963
b. Republic Act 10066
c. Republic Act 10693
d. Republic Act 10966

Answer: a. Republic Act 10963

19. The key component of the TRAIN law is the lowering of personal income tax and exempting
_______.
a. the first P220,000 income of all individuals
b. the first P250,000 income of all individuals
c. all minimum wagers
d. all freelancers and self-employed Filipinos

Answer: b. the first P250,000 income of all individuals

20. What does DAR mean?

a. Department of Agricultural Reform?
b. Department of Agriculture and Reclamation
c. Department of Agrarian Reform
d. Department of Agricultural Reformation

Answer: c. Department of Agrarian Reform

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21. What was the first law on crop sharing which legalized the 50-50 share between landlord and
tenant with corresponding support to tenants protecting them against abuses of landlords?
a. Republic Act No. 1400
b. Republic Act No. 4054
c. Commonwealth Act No. 608
d. Republic Act No. 8532

Answer: b. Republic Act No. 4054

22. He is considered the father of Agrarian Reform.

a. Ramon Magsaysay
b. Carlos P. Garcia
c. Diosdado Macapagal
d. Ferdinand E. Marcos

Answer: c. Diosdado Macapagal

23. Which of the following is NOT a characteristic of Agrarian Reform?

a. Vital position of agriculture in national economy
b. Obstacles to agricultural productivity
c. An instrument for increasing agricultural productivity
d. Control of agriculture activities for the rapid development of commercial industry

Answer: d. Control of agriculture for the rapid development of commercial industry

24. Agrarian Reform is comprised of land reform and development of complimentary institutional
framework such as the following EXCEPT:
a. government agencies
b. rural education
c. social welfare institutions
d. business and companies

Answer: d. business and companies

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25. An act instituting a comprehensive agrarian reform program to promote social justice and
industrialization, providing the mechanism for its implementation, and for other purposes is
_______.
a. Republic Act No. 6657
b. Republic Act No. 9700
c. Republic Act No. 8532
d. Republic Act No. 7881

Answer: a. Republic Act No. 6657

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