Public Sector and Fiscal Policy in the Philippines

What is the main role of Government-Owned and Controlled Corporations (GOCCs) in the public sector?

• Regulate private businesses

• Provide public goods and services for profit

• Manage government investments and operate state enterprises

• Collect taxes and manage national debt

How do Local Government Units (LGUs) contribute to economic stabilization?

• By controlling inflation through taxation policies

• By managing local infrastructure and community welfare programs

• By monitoring government revenue collection

• By enforcing monetary policies through banking regulations

Which of the following illustrates a challenge in the Philippine public sector?

• Effective implementation of social programs like 4Ps

• Corruption leading to inefficient service delivery

• Reduction of income inequality through taxation

• Strong fiscal management by the Bureau of Internal Revenue (BIR)

Which principle of governance is violated when government projects are delayed due to bureaucratic inefficiency?

• Transparency

• Rule of Law

• Accountability

• Efficiency and Effectiveness

The Pantawid Pamilyang Pilipino Program (4Ps) is an example of the public sector’s role in:

• Economic regulation

• Infrastructure development

• Income redistribution

• Defense and national security

Which of the following best describes fiscal policy?

• The regulation of interest rates and money supply

• The use of government spending and taxation to influence the economy

• The control of imports and exports through tariffs

• The implementation of wage policies for government employees

If the government reduces income taxes and increases infrastructure spending, it is using:

• Contractionary fiscal policy

• Expansionary fiscal policy

• Supply-side policy

• Monetary policy

How does Value-Added Tax (VAT) contribute to government revenue?

• It collects tax only from businesses

• It is applied only to luxury goods

• It taxes goods and services at a percentage of their value

• It is deducted from employees’ salaries

Why is borrowing from the International Monetary Fund (IMF) sometimes necessary for the Philippines?

• To fund social welfare programs permanently

• To increase the government’s savings

• To cover budget deficits and finance infrastructure projects

• To control inflation and stabilize interest rates

Which fiscal policy measure can be used to reduce the national debt?

• Increasing government spending

• Implementing new tax reforms

• Expanding social welfare programs

• Lowering corporate tax rates