WorksheetsBasic Economics with Agrarian Reform
Total questions: 50
Worksheet time: 25mins
What does the maxim "There is no such thing as free lunch." mean?
You have to pay every time you have lunch.
All goods and services have a price.
Nobody can have a free lunch anywhere.
Every action and decision has a price that we need to pay.
Suppose while walking you found a P100. If you choose to use the P100 to watch a movie, what is your opportunity cost for watching the movie?
Nothing, you just found the money anyway.
P100, because you could have used the P100 to buy other things.
P100 plus the value of the time you spent watching the movie.
Nothing if you really like the movie that you watched.
What is the foremost effect of scarcity on how people live?
It makes people very prudent in their spending.
Greed and selfishness are values that some people adhere to.
People face tradeoff in everything they do and decide.
Environmental protection has become one of the leading issues today.
Economics is a science because
It studies material objects only.
It's a discipline under the Social Sciences.
It applies and uses scientific methodology.
There is a Nobel Price in Economics.
What does the assumption "ceteris paribus" mean?
All other variables are kept constant except the one being measured
Some variables are not included in the study
We assume a perfectly competitive market
All variables are kept constant
What is a market?
a place where people buy and sell
a group of buyers and sellers of a particular good or service
a mechanism by which exchanges takes place
both b and c
What is demand?
It is a market expression of the cumulative willingness of all household to buy different amount of goods and service at different prices.
It is the market expression of the cumulative ability of all household to buy different amount of goods and services at different prices.
It is the market expression of the cumulative willingness and ability of all household to buy different amount of goods and services at different prices.
It is the market expression of the cumulative willingness and ability of all household to buy different amount of goods and services at different prices on a given point in time.
Which of the following statements if TRUE?
Price is variable while qty. demanded and qty. supplied are constant.
Price is constant while qty. demanded and qty. supplied are variables.
Prices in a dependent variables and qty. demand and supply are independent variables.
Prices in a independent variables and qty. demand and supply are dependent variables.
What best describes the demand curve?
is downward sloping indicating a positive relationship between price and qty. demanded
is downward sloping indicating a negative relationship between price and qty. demanded
is upward sloping indicating a positive relationship between price and qty. demanded
is upward sloping indicating a negative relationship between price and qty. demanded
Which of the following are complementary goods?
Coffee and tea
Cellphone and sim card
Pencil and ballpen
Jeepneys and buses
What is the relationship between price and quantity supplied?
Proportional
Negative
Parallel
Positive
A new tax on imported milk was imposed by the government which resulted in the decrease of the supply of this product. What factor of supply is described in this situation?
Cost of Production
Expectation of Future Price
Seasonality
Price of Related Product
If the government succumbs to the pressure of militant groups to lower the price of oil by setting a ceiling price what would likely happen?
There will be a surplus of oil in the country.
There will be a shortage of oil in the country and people will have to fall in line today.
The people will benefit more from the lowering of the price of oil.
There will be no effect at all in the market for oil as the supply of oil is price inelastic.
A change in quantity demanded implies that
There is a shift in the demand curve.
There is a change in the slope of the demand curve.
There is a movement along the existing demand curve.
There will be an upward sloping demand curve.
What would likely happen if the minimum wage is increased without any corresponding rise in the level of productivity?
It increases the welfare of the workers as they will have more money to take home to their family.
It will increase unemployment as many companies will resort to lay-offs or even shut down their operations.
The government will have to increase also the wage of government employees.
Many OFW will return to the country to work.
What is the likely effect of the government's policy on illegal drugs to jail the pusher and save the user?
The supply of drugs will decrease as the pushers (suppliers) are in jail.
The demand for drugs will decrease as the shortage of illegal drug will make it very expensive.
The policemen will have a hard time identifying whether someone is only a user or a pusher.
The demand for illegal drugs will remain the same as it is price inelastic and will likely increase drug related crime like robbery, theft, and others.
This happens when the government spends more than it earns from revenue generating activities.
There is a budget cut.
There is a budget deficit.
There is a budget surplus.
None of the above
What is the name of the global financial services firm that went bankrupt on September 15, 2008 and is considered the biggest bankruptcy in the U.S. history?
Lehman Brothers
American Investment Group
J.P. Morgan and Chase
Bank of America
Which is NOT a function of money?
unit of account
store of value
medium of exchange
tool against inflation
A period of general economic decline typically defined as a decline in GDP for two or more consecutive quarters is called
Depression
Recession
INflation
Stagnation
A process or means by which the sovereign, through the law-making body, raise revenue to defray the necessary expenses of the government.
Tax
Penalty
Assessment
License
The term is used to describe duties payable on goods, whether imported to exported.
Subsidy
Revenue
Tariff
Assessment
The use by the taxpayer of illegal or fraudulent mean to defeat or lessen the payment of a tax.
Tax evasion
Tax deduction
Tax avoidance
Tax credit
The exploitation by the tax payer of legally permissible alternative tax or methods of assessing taxable property or income.
Tax evasion
Tax deduction
Tax avoidance
Tax credit
A kind of tax on the right of the deceased person to transmit his estate to his lawful heirs of beneficiaries.
Estate Tax
Inheritance Tax
Privilege Tax
Transfer Tax
The policy of the state to pursue a Comprehensive Agrarian Reform Program is clearly stated in its policy to
promote human rights.
establish owner-cultivatorship of economic size farms
move the nation toward sound urban development and industrialization.
free the tenant farmers from the bondage of the soil.
What does this principle of equity in taxation provide?
Taxpayers should be taxed according to their professions and status in life.
Taxpayers regardless of income should pay the same amount of tax.
Taxpayers that are similarly situated in life should be taxed similarly.
Taxpayers who do not have permanent jobs should pay less tax.
Some Congressmen want to reduce cigarette smoking by increasing the so-called "sin tax". It will probably take a large increase in the tax to make a difference because
demand for cigarettes is inelastic.
demand for cigarettes is elastic.
supply of cigarettes is inelastic.
supply of cigarettes is elastic.
The retention limit to be awarded to each child of the landowner is
three hectares
four hectares
five hectares
six hectares
The type of cooperative which promotes thrift among members and creates funds in order to grant loans for productive and provident purposes is called
Credit cooperative
Producer cooperative
Service cooperative
Consumers cooperative
Which of the following describes marketing cooperatives?
They distribute products of members to both members and non-members.
They coordinate with other cooperatives in marketing the products of members.
They undertake joint production of goods whether agricultural of industrial.
They engage in the supply of production inputs to members and market their products.
The Comprehensive Agararian Reform Law of 1988 stipulates that the retention limits of landowner is
5 hectares
10 hectares
8 hectares
7 hectares
The Comprehensive Agrarian Reform Law of 1988 is also known as
Republic Act No. 6662
Republic Act No.6673
Republic Act No. 6657
Republic Act No. 6654
Taxable income less additional exemption
Net income less additional exemption
Gross compensation income less withholding tax
Gross income less total exemptions
Gross income less personal exemptions
It is an economic union of nations that constitute a single market and uses a single currency called Euro;
ASEAN
WTO
European Union
OPEC
These cooperatives provide vital service to the general public such as transportation, health, and housing service.
consumers cooperatives
service cooperatives
credit cooperatives
production cooperatives
Of the following, the factor that would cause an increase (shift to the right) in supply is
improved technology
lower labor productivity
increased price of substitutes
increase demand
The main reason why OPEC has been unable to keep oil prices high is that
Demand tends to become more elastic in the long run.
Supply tends to be more elastic in the long run.
Government regulations have prevented it.
Consumer boycott has driven the price down.
The "market basket" on which the consumer price index is based is composed of
raw materials purchased by firms.
total current production.
products commonly purchased by typical consumers.
none of the above.
What is the likely reason why the Philippine GNP is always bigger that it's GDP?
Foreigners are producing more in the Philippines, than Filipino OFWs are producing abroad.
Filipino OFW are producing more abroad than foreigners are producing in the Philippines.
Salaries of workers abroad are bigger than in the Philippines.
The government is not doing enough to achieved growth in the country.
Because of the "substitution effect" on demand, when the price of coffee increases
People will use less cream and sugar.
People will be able to afford less coffee because their buying power has decreased.
People will drink tea instead.
People will use less costly coffee beans and other ingredients.
When price rises at an extraordinary high rate, it is called
INflation
Deflation
Hyperinflation
Disinflation
Monopoly results because of
Barriers to entry into the industry
Greed by the seller
Lack of interest by potential competitors
All of the above
What government agency is tasked to manage the monetary policy of the country?
Department of Finance
Department of Budget and Management
National Economic and Development Authority
Bangko Sentral ng Pilipinas
Economics deals with the utilization of resources. How do we describe these resources?
Abundant
Natural
Human
Scarce
The power of taxation is primarily and exclusively exercised by
Congress
President
Bureau of Customs
Senate
It is a uniform tax imposed on sale of goods or services as they pass along the production and distribution chain.
Exercise tax
Value-added tax
Inheritance tax
Tariff tax
A public market for trading of company shares and other derivatives is called
Money market
Portfolio market
Stock market
Foreign exchange market
Which law extended the implementation of the CARP for five more years?
RA 6662
RA 6654
RA 9700
RA 9850
Which law created the Cooperative Development Authority?
RA 6993
RA 6938
RA 6939
RA 6983
