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THIRD QUARTER TEST (AP 10)

Total questions: 60

Worksheet time: 1hrs 14mins

Name
Class
Date
1.

A Latin word that means "touch sharply".

a)

Imber

b)

Apricus

c)

Taxare

2.

True or False. A tax is a voluntary contribution of the people of a country to meet the financial needs of the government.

a)

True

b)

False

3.

which best statement completes the sentence: Without tax the government ________________.

a)

can still exist through donations.

b)

can still provide the services needed by its people.

c)

can control economic relations.

d)

would be unable to meet the demands of society.

4.

Desmond owns a gas station. What type of tax will he have to pay on the land that the gas station is on?

a)

Property Tax

b)

Payroll Tax

c)

Income Tax

5.

Desmond bought a new boat. He had to pay which kind of tax on his new boat?

a)

Sales tax

b)

Income Tax

c)

Payroll tax

6.

This is a tax on retail items you buy at stores?

a)

Income

b)

Sales

c)

Payroll

7.

Property Tax is-

a)

Tax on things you buy or purchase

b)

tax on the house, building or land you own

c)

tax take out of your paycheck

8.

Our tax money is spent on all of the following EXCEPT:

a)

Social Security

b)

The Military

c)

Private School Education

d)

National Parks

9.

Taxes are collected by

a)

Businesses

b)

Parents

c)

Foreign countries

d)

Government

10.

Who pays taxes

a)

You

b)

Adults

c)

Immigrants

d)

Everyone

11.

who made the taxes imposed by Solomon heavier resulting in a revolt of the ten tribes and forming their own government. I Kings 12: 1-20

a)

Rehoboam

b)

David

c)

Nebuchadnezzar

d)

Caesar

12.

True or False. The underground economy includes firms that do not pay their taxes.

a)

True

b)

False

13.

which of the following is a source of government debt?

a)

transfer payment

b)

collateral

c)

expenditure

14.

When a government is spending more money than it is making, it is operating in a...

a)

deficit

b)

surplus

c)

IOU

d)

interest

15.

Where does government get money for the economy?

a)

the president

b)

new legislation

c)

business taxes

16.
This is a tax on property inherited after a person's death.
a)
excise
b)
proportional
c)
gift
d)
estate
17.
The taxing and spending policies of the president and Congress are known as
a)
revenue policy
b)
fiscal policy
c)
monetary policy
d)
recession policy
18.

A plan for how much will be spent on various things.

a)

surplus

b)

budget

c)

deficit

d)

securities

19.

Taxes are the ________ of the government and so should be collected without unnecessary hindrance.

a)

lifeblood

b)

purpose

c)

power

d)

objective

20.

One major goal of taxation could be:

a)

The redistribution of some wealth from high income earners to low income earners.

b)

To achieve equality and equity in the distribution of income.

c)

To Redistribute funds towards projects which benefit the most important citizens in an electorate

d)

To achieve equity in the distribution of income by satisfying all stakeholders.

21.

The Philippine Government is a big spender and borrower.

a)

True

b)

False

22.

What is the biggest source of government funds?

a)

Dept

b)

government-controlled corporation

c)

Taxes

d)

expenditure

23.

The government earns incomes in two ways, tax and non-tax revenues.

a)

True

b)

False

24.

Which is an example of non-tax revenues?

a)

fines and fees

b)

income tax

c)

property tax

d)

gift taxes

25.

What is the last resort the government can do if its revenues are insufficient to finance the growing budget?

a)

Raise taxes

b)

sell government properties

c)

borrowing

26.

Which of the following is not true about government borrowing?

a)

The government chooses to borrows rather than raise taxes.

b)

The government borrows because of the insufficient budget.

c)

The government borrows to distribute the wealth of the rich to the people.

27.

Taxation is not just a source of income for the government but it can also be a tool to manipulate the economy.

a)

True

b)

False

28.

Through taxation, the government can reduce the money available during inflation.

a)

True

b)

false

29.

3. Mary opened a dance studio. She receives all the profits from her students’ lessons.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

30.

Dan, Tony, and Mac own a pizza parlor. They rotate hours and days off.

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

31.

8. A person who takes a risk to produce goods and services in search of a profit is an entrepreneur. In which kind of business structure may entrepreneurs establish a business?

a)

Partnerships and Corporations

b)

Sole Proprietorships, Partnerships, and Corporations

c)

Only Corporations

d)

Sole Proprietorships and Corporations

32.
A business partnership has ___________ who share the risks and the profits.
a)
One owner
b)
No more than three owners
c)
Two or more owners
d)
Five or more owners
33.
Decreased government spending may result in _____ taxes. 
a)
higher
b)
more
c)
lower
34.
Which of the following is an advantage of sole proprietorships:
a)
Limited liability
b)
Unlimited financial power
c)
Dual taxation
d)
Quick decision making
35.
Which of the following is a disadvantage of sole proprietorships:
a)
Limited capital
b)
Control 
c)
Privacy
d)
Tax liability
36.
Which of the following is an advantage of the corporation as a form of business ownership:
a)
Less complex requirements
b)
Separate owners and managers
c)
Limited liability
d)
High Taxes
37.
Susie is starting her own lemonade store. What economic term would best describe Susie and what does that term mean? 
a)
Consumer – a person who uses or consumes goods
b)
 Partnership –  partner in the lemonade stand
c)
Entrepreneur-  - person who takes a risk to start a new company
38.

The amount of something that is available and ready to be sold.

a)

demand

b)

supply

c)

income

d)

profit

39.

Someone who takes the risk to start and organize a business.

a)

entrepreneur

b)

debt

c)

consumers

d)

shortage

40.

An item or service that is to be sold to consumers is called a _________.

a)

profit

b)

product

c)

economics

d)

income

41.

What does income mean?

a)

The amount of debt one goes into when starting a business.

b)

How much allowance your parents give you weekly.

c)

The amount of money made from a business or job.

d)

Ten dollars

42.

Something that is owed to someone else.

a)

due date

b)

debt

c)

income

d)

economics

43.

An individual who purchases or buys goods or services are called ____________.

a)

entrepreneurs

b)

students

c)

monopoly

d)

consumers

44.

Ideally taxes should be based on taxpayers ability to pay. In other words taxes should be:

a)

Lead to equality

b)

Reduce Inequality

c)

Equitable (fair)

d)

Rational

45.

If the taxes are economical, they should:

a)

respect principles of economics

b)

lower the tax burden on low income earners

c)

be easy and cheap to collect.

d)

redistribute money to people on low incomes.

46.

The tax system should attempt to achieve its aims without any undesirable side effects. Eg. It should not lead to disincentives to work. This principle of taxation is called:

a)

Equity

b)

Economical

c)

Productivity

d)

Efficiency

47.

When taxes can adapt to changes in the economic environment, we call this principle of taxation:

a)

Responsiveness

b)

Adaptability

c)

Flexibility

d)

Wishful Thinking

48.

The first coin minted in the Philippines in 1727

a)

Piloncitto

b)

Gold ring

c)

Spanish Barilla

d)

Bariya

49.

Which Philippine bill has the greatest value?

a)

One hundred pesos

b)

Five hundred pesos

c)

One thousand pesos

50.

Whose image is found on the 1-peso coin?

a)

Andres Bonifacio

b)

Jose Rizal

c)

Emilio Aguinaldo

51.

What is the definition of barter?

a)

to visit another country with friends

b)

to exchange resources or services for mutual advantage

c)

to change clothes and buy new ones

d)

to buy an elephant and an orange

52.

What problems could occur when swapping goods in the past?

a)

the items were very smelly

b)

some things were heavy and difficult to move

c)

the food was made of gold

53.

What is likely to happen to money in the future?

a)

Physical currency will disappear and we will use digital cash.

b)

Physical currency will stay the same and the internet will disappear.

c)

physical currency will disappear and we will use cowrie shells.

54.
The easiest form of business to start and end is a(n)
a)
limited liability partnership
b)
S corporation
c)
franchise
d)
proprietorship
55.
One important advantage of forming a partnership is that this form of business organization gives each owner sole control over the business.
a)
True
b)
Fale
56.
What is a business owned and operated by two or more people?
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
57.
Disadvantages include limited life and
the potential for conflict between partners
a)
Sole Propriotorship
b)
Partnership
c)
Corporation
58.
An entrepreneur can choose to have which type of business organization?
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
d)
All of the above
59.

Which of the following is an advantage of sole proprietorship?

a)

There are almost no requirements to start up a sole proprietorship.

b)

The owner keeps all the profits.

c)

The owner makes all the decisions.

d)

All of the above statements are true.

60.

In the United States, which type of business accounts for the greatest share of revenues?

a)

sole proprietorship

b)

partnership

c)

shareholders

d)

corporation