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Ss3 Economics 3C

Total questions: 44

Worksheet time: 23mins

Name
Class
Date
1.

It is a term for when a taxing authority, usually a government, levies or imposes a tax.

a)

Tax payers

b)

Tax Credits

c)

Tax rate

d)

Taxation

2.

Governments impose income taxes on financial income generated by all entities within their jurisdiction, including individuals and businesses.

a)

payroll tax

b)

consumption tax

c)

inheritance tax

d)

value added tax

e)

income tax

3.

A type of tax levied on individuals who inherit the estate of a deceased person.

a)

payroll tax

b)

consumption tax

c)

inheritance tax

d)

value added tax

e)

income tax

4.

It is a tax on the purchase of a good or service

a)

payroll tax

b)

consumption tax

c)

inheritance tax

d)

value added tax

e)

income tax

5.

It is a tax withheld by employers from each employee's salary and is paid to the government.

a)

payroll tax

b)

consumption tax

c)

inheritance tax

d)

value added tax

e)

income tax

6.

It is added to a product at every point on the supply chain where value is added.

a)

payroll tax

b)

consumption tax

c)

inheritance tax

d)

value added tax

e)

income tax

7.

an individual or business entity that is obligated to pay taxes to a federal, state, or local government.

a)

taxation

b)

tax credit

c)

taxpayers

d)

tax rate

8.

3 types of taxes

a)

property tax

b)

sales tax

c)

scale tax

d)

regressive tax

9.

how many types of tax in the philippines

a)

10

b)

12

c)

3

d)

4

10.

are farmers exempt from paying tax? 

a)

YES

b)

NO

c)

NONE OF THE ABOVE 

11.

A firm produces 1000 units and has a total cost of $50 000. The variable cost per unit produced is $40.


What is the total fixed cost of the firm?

a)

$1000

b)

$4000

c)

$10 000

d)

$40 000

12.

Firms can grow by increasing the internal scale of their operations.


What might be a disadvantage of this to the firm?

a)

A average cost begins to fall

b)

it is difficult to motivate workers

c)

labour is replaced by robots

d)

markets become global

13.

When is profit maximisation achieved?

a)

A when average fixed cost is at a minimum

b)

when average revenue is at a maximum

c)

when the firm produces the largest output it can with the resources it has available

d)

when there is the greatest possible difference between total revenue and total cost

14.

What must result from an increase in output?

a)

a decrease in the average cost

b)

a decrease in the total costs

c)

an increase in the fixed costs

d)

an increase in the variable costs

15.

An entrepreneur buys a workshop for $200 000 to make plastic boxes. In the first year of operation he spends $70 000 on materials, employs ten production workers paid by the amount produced (piece rate) at a total cost of $80 000 and buys two delivery vehicles for $10 000 each.


What are his total variable costs?

a)

A $100 000

b)

$150 000

c)

$220 000

d)

$370 000

16.

What is the definition of diseconomies of scale?

a)

the decrease in average revenue as output increases

b)

the decrease in fixed cost as output increases

c)

the increase in average total costs as output increases

d)

the increase in total costs as output increases

17.

What is an example of a technical economy of scale?

a)

A Banks provide loans at a lower interest rate to bigger firms.

b)

Bigger firms hire more workers.

c)

Firms obtain discounts when buying in bulk.

d)

Machines are used closer to their full capacity.

18.

Which statement about fixed costs is correct?

a)

They exist only in the long run.

b)

They include raw material and direct labour costs

c)

They increase at the same rate as output

d)

They must be paid even if there is no output.

19.

What is a possible cause of diseconomies of scale?

a)

an increase in extra administration

b)

an increase in raw materials costs

c)

an increase in taxation on company profits

d)

an increase in the national minimum wage

20.

A company’s annual report suggested that it had benefited from some changes.


Which change is an internal economy of scale for this company?

a)

an improvement in road and rail facilities that has reduced its distribution costs

b)

an increase in the number of local specialist workers that it could recruit

c)

the introduction of new training at a local college for which staff have enrolled

d)

the reduction in the company’s costs by the purchase of a factory supplying components

21.

Which statement about total fixed cost is correct?

a)

It falls as output increases.

b)

It is calculated by adding total cost and total variable cost

c)

It is calculated by dividing total cost by output.

d)

It must be paid even if output is zero.

22.

Which is an internal diseconomy of scale?

a)

a lack of communication in a firm

b)

a reduction of cost by buying in bulk

c)

a shortage of skilled labour in an area

d)

traffic congestion in a particular area

23.

A major computer company announced that its profits had fallen below the level predicted.


What might have caused this?

a)

increased advertising costs that greatly improved sales

b)

low prices that made the company’s product competitive

c)

new technology that reduced costs

d)

reduced sales and low prices

24.

An entrepreneur buys a workshop for $10 000 to make picture frames. In the first year he spent $40 000 on materials and employed two workers. He paid the workers for each frame produced with a total cost of $30 000. He bought a vehicle to deliver the frames for $10 000


What were his total variable costs?

a)

$40 000

b)

$70 000

c)

$80 000

d)

$100 000

25.
which one is money ?
a)
cash
b)
cheque
c)
draft
d)
all the above
26.
Barter system is now replaced by
a)
Banking system
b)
International system
c)
Monetary system
d)
Financial system
27.

The difference between representative money and fiat money is that

a)

representative money is worth more than fiat money.

b)

fiat money is counted in coins; representative money is counted in paper dollars.

c)

fiat money is more durable than representative money.

d)

representative money is backed by silver or gold, ; fiat money is not.

28.

What effect does inflation have on the purchasing power of money?

a)

Causes it to go down

b)

Causes it to go up

c)

None

d)

The effect varies depending on the time and place.

29.

During times of hyperinflation

a)

people often adopt something other than the official currency to use as money

b)

people hoard the official currency

c)

the purchasing power of the currency increases rapidly

d)

the money supply is decreasing

30.

Which of the following is not a characteristic of money?

a)

Divisibility

b)

Portability

c)

Acceptability

d)

Responsibility

31.

The ability to use an asset as a medium of exchange describes its....

a)

portability

b)

scarcity

c)

durability

d)

liquidity

32.
What is the Federal Reserve?
a)
Agency responsible for international trade
b)
Central credit union
c)
Agency responsible for collecting taxes
d)
Central bank of the U.S.
33.
What is the Federal Reserve?
a)
Agency responsible for international trade
b)
Central credit union
c)
Agency responsible for collecting taxes
d)
Central bank of the U.S.
34.
Which of the following is NOT one of the characteristics of money?
a)
durable
b)
stable
c)
scarce
d)
affordable
35.
Currently, what is U.S. money backed by?
a)
Frankincense
b)
Gold
c)
Silver
d)
Trust that it is worth something
36.
What is inflation?
a)
A fall in the general level of prices
b)
A rise in the general level of prices
c)
A rise in the GDP
37.
Which of the following is NOT one of the characteristics of money?
a)
durable
b)
stable
c)
scarce
d)
affordable
38.
What is inflation?
a)
A fall in the general level of prices
b)
A rise in the general level of prices
c)
A rise in the GDP
39.
This characteristic of money refers to the ability to carry it with you---lightweight and easy to transport.
a)
portability
b)
uniformity
c)
acceptability
d)
stability
40.
This is money that has another useful purpose.
a)
fiat
b)
commodity
c)
debt
d)
securities
41.

Anything of value

a)

asset

b)

equity

c)

liability

d)

medium of exchange

42.

A cash obligation

a)

liquid asset

b)

owner's equity

c)

asset

d)

liability

43.
The study of resources such as money, materials, and labor
a)
economics
b)
services
c)
producers
d)
goods
44.
________ is the most basic economic problem.
a)
Scarcity
b)
Labor
c)
Greed
d)
Capital