GENERAL EDUCATION|SOCIAL SCIENCE TEST|MR. RAPHAEL LLOYD A.

FERNANDO
TEST ITEMS IN BASIC ECONOMICS
By: Mr. Raphael Lloyd A.
Fernando

1. The world of nations is suffering from recession and so nations are experiencing the following EXCEPT .
A. People are losing their jobs C. There is a drop in total spending
B. Businesses are raking bigger profits D. Production is slowing down
2. When one company controls the supply sugar, which term applies?
A. Monopoly C. Economic stability
B. Inflation D. Equilibrium
3. Tomatoes are off season and so price for tomatoes is up. Which law/principle in economics explains it?
A. Substitution effect C. Principle of marginal utility
B. Law of cause and effect D. Law of supply and demand
4. Which explains GNP?
A. The total value in pesos of goods and services produced during this year
B. The total value in pesos of goods produced during the year
C. The total value in pesos of services produced during the year
D. The total value in pesos of goods and services produced for 2 quarters
5. How can the Comprehensive Agrarian Reform Program bring about social equity and economic prosperity in the country?
I. By distributing the agricultural lands to landless farmers free of charge
II. By transferring the ownership of land to framers for a value
III. By helping the affected landowners to use their land compensation in viable business activities
IV. By providing support services to farmer-beneficiaries
A. II,III and IV C. I,II and III
B. I,II and IV D. I,III and IV
6. The Comprehensive Agrarian Reform and cooperatives are meant to .
A. eradicate poverty in the country C. to make all citizens equal
B. bridge the gap between the rich and the poor D. to improve on the country’s literacy rate
7. When parents decide to send their children to a private school and pay their tuition fee instead of sending them to the
public school, they don’t get their share in the benefit derived from the taxes they pay. This is a case of
A. social injustice C. double taxation
B. double jeopardy D. social inequity
8. Which one CORRECTLY applies to Philippine foreign trade?
A. Philippine expenditure exports and earning from imports fluctuate.
B. The Philippines spends less on imports than it earns from exports.
C. The Philippine expenditure on imports is balanced with its earnings from exports.
D. The Philippines spends more on imports than it earns from exports.
9. The ultimate objective of the Comprehensive Agrarian Reform is to .
A. Ensure cultivation of all idle lands C. Distribute arable lands to the landless
B. Abolish share tenancy in favor of lease tenancy D. Establish owner-cultivated farms
10. What is TRUE of a progressive system of taxation?
A. The rate of tax increases as the income tax base or income bracket increases.
B. The tax is equal regardless of class and place.
C. The rate of tax decreases as the income tax base increases.
D. The rate of tax increases as the income tax base decreases.
11. I rent out for P10, 000 per month my only building and lot to the Jesus is Lord Group which uses it exclusively for
religious purposes. I am exempted from paying of .
A. Property tax C. Income tax
B. Professional tax D. Community tax
12. You are a member of a cooperative which operates taxes and tricycles and buses. Of which type of a cooperative are
you a member?
A. Service cooperative C. Marketing cooperative
B. Multipurpose cooperative D. Producers cooperative
13. Which is unlawful act of escaping from payment of taxes?
A. Evasion C. Exemption
B. Avoidance D. Shifting
14. The primary purpose of taxation is to .
A. raise revenue for the support of government C. Fortify the government invaders
B. reduce inequalities in wealth and incomes D. make the country a leading industrialized country in the world
15. Which is/are essential for the Comprehensive Agrarian Reform Program to truly succeed?
I. Granting the beneficiaries the right to sell the piece of land awarded to them
II. Change of heart of the landlords and lawmakers
III. Education of the beneficiaries
A. II and II C. II only
B. I,II and III D. III only
16. What does “capital” in economics refer to?
A. Investment and loss computed C. Money/machines invested to transact business
B. Outcome of business transaction D. Profit and labor spent for the business

ST. LOUIS REVIEW CENTER – CALABARZON Page 1 of 2

GENERAL EDUCATION|SOCIAL SCIENCE TEST|MR. RAPHAEL LLOYD A. FERNANDO
17. What is the type of cooperative which promotes thrift among members and creates funds in order to be able to grant loans?
A. Service C. Consumers
B. Producers D. Credit
18. One of the major functions of taxes is to finance real government expenditures. This function can simply be stated as to
.
A. Promote development C. Raise revenues
B. Secure price stability D. Raise national security
19. Which term refers to the measures undertaken by the government which would remove anything that hinders the entry
of foreign products, services and capital between countries?
A. Liberalization C. Privatization
B. Globalization D. Internationalization
20. What do we call the sum of money collected for our use of road, bridge and highway?
A. Tax C. Penalty
B. Assessment D. Toll
21. Which term refers to duties payable on goods, whether imported or exported?
A. Assessment C. Subsidiary
B. Tariff D. Revenue
22. Among the developing Asian nations, which of the following is widely promoted to be the better solution to poverty
and unemployment?
A. Privatization C. Industrialization
B. Urbanization D. Importation
23. Stagflation occurs when the economy experiences .
A. Rising prices and rising output C. Falling prices and falling output
B. Rising prices and falling output D. Falling prices and rising output
24. Which of the following best describes a recession?
A. A fall in real GNP over two consecutive time periods C. Nominal GNP declines from one period to the next
B. An increase in real GNP from one period to the next D. No change in real GNP from one period to the next
25. Gross Domestic Product is the sum of the market value of the .
A. Intermediate goods C. Manufactured goods
B. Final goods and services D. Inferior goods and services
26. In a free-market economy the allocation of resources is determined by .
A. Votes taken by consumers C. Consumer preferences
B. Central planning authority D. The level of profits of firms
27. Trade-offs are required because wants are unlimited and resources are .
A. Economical C. Scarce
B. Unlimited D. Marginal
28. Raising taxes and increasing welfare payments .
A. Reduce market power C. Improve efficiency at the expense of equity
B. Prove that there is such a thing as a free lunch D. Improve equity at the expense of efficiency
29. Philippine economic indices are closely related to the rise and fall of the
A. German Mark C. London Pounds
B. Japanese Yen D. US Dollars
30. Tax imposed on all employed and practicing professionals\
A. Income Tax C. Community Tax
B. Real Estate Tax D. Inheritance Tax

ST. LOUIS REVIEW CENTER – CALABARZON Page 2 of 2