- 1. Which of the following is an effect of inflation?
A) Increase in the purchasing power of money
B) Decrease in interest rates
C) Increase in savings
D) Reducing the real value of money and/or control the Money Supply
- 2. It is an amount of money that households have available for spending and saving which is equal
to
Total Income less Taxes.
A) Taxable Income
B) Individual Income
C) Savings
D) Disposable Income
- 3. When the Government spending/expenditure is more than The National Fund/Budget.
A) Budget Surplus
B) Surplus Spending
C) Budget Deficit
- 4. What are the main reasons the Philippines engages in foreign borrowings?
A. By ensuring that the government can always afford to pay its debts, by using foreign borrowing as an effective tool for productive spending to drive economic growth and ensure immediate funding for emergencies and crisis
B. Government borrowings used for such productive investments as infrastructure projects that spur growth and create jobs instead of for debt servicing, are beneficial, rather than a burden, to economic development.
C. Foreign borrowings to help fund the country's unplanned expenditures for the crisis response such as COVID-19, other emergencies to be spent well to provide emergency assistance to vulnerable families and other pandemic-hit sectors of the economy; boost the country's healthcare capacity; keep the economy afloat and support its quick recovery
D. Only to fill-in the budget deficit of the country and make more borrowings in the future
A) A, B, C and D
B) D only
C) A, B and C only
D) A and B only
- 5. It is the most popular and most used measure as it reflects what happens to the living standards of most consumers.
A) Phillip's Curve
B) CPI-Consumer Price Index
C) Inflation
- 6. What role does remittances from overseas Filipino workers (OFWs) play in consumption in the Philippines?
A) They decrease overall household consumption
B) They solely contribute to savings
C) They have no impact on consumption patterns
D) They significantly boost household consumption
- 7. There Is Shortage In The Market. When there is INCREASE in consumption by the sectors but the increase in AGGREGATE Demand is not equal to the Total/Aggregate production.
A) Demand-Pul Inflation
B) Cost-Push Inflation
- 8. Money introduced to the circular flow as investment, government spending and exports.
This inflow increases the income flow.
A) Consumption
B) Business Cycle
C) Injections
D) Leakages
- 9. What is the primary factor influencing household consumption in the Philippines?
A) Interest rates
B) Government policies
C) Level of education
D) Disposable income
- 10. What is being described in the example situation below:
When the oil Price (one of the key resources) increases slowed down the growth of industrial economies creating some recession (or slow down in economic activity), slower growth of international trade, decline in export prices-deflation of export prices, etc.
A) Cost-Push Inflation
B) Currency Devaluation
C) Deflation
D) Demand-Pull Inflation
- 11. Which demographic group in the Philippines is more likely to prioritize savings?
A) Families with children
B) Retired individuals
C) Teenagers
D) Young professionals
- 12. Aside from taxes collected, the government also earns income from: _?
A. Fines and Fees
B. Licenses and Registration Charges
C. Import Taxes
D. Profits earned by government operated and controlled corporations
A) C only
B) A, B and D only
C) A, B, C and D
- 13. Which of these Benefactors benefit from the effects of inflation?
The effects of inflation to the public/Filipinos;
A. Creditors
B. Businesses/company owners
C. Speculators (entrepreneurs/risk-taker/business opportunists) and business firms who are confident to invest/risk-takers.
A) A, B and C
B) A only
C) B only
A) GNP Deflator
B) Disposable Income
C) National Income
D) Real GNP
- 15. Which of the following best describes the term "savings rate"?
A) The amount of income spent on luxury goods
B) The total savings of a household over time
C) The percentage of income that is saved rather than spent
D) The total amount of investments made
- 16. Increase in raw materials and resources for production.
A) Hyperinflation
B) Demand-Pul Inflation
C) Cost-Push Inflation
D) Inflation
- 17. The term is often used in the context of government borrowing, where it is used to describe a situation where a government borrows excessively, leading to a high level of public debt.
A) Binge Borrowing
B) Budget Deficit
- 18. Products that reached the highest level of transformation.
A) Intermediate Stage Product
B) Raw Material Products
C) Final Stage Product
D) Goods
- 19. What is the key role of monetary policy during a recession?
A) To reduce taxes on corporations
B) To decrease interest rates and increase money supply
C) To increase government spending
D) To raise interest rates
- 20. What is a common reason for low savings rates among Filipino households?
A) High levels of disposable income
B) Increased investment opportunities
C) Existence of many financial institutions
D) High levels of consumer debt
- 21. Which of these money known as the Non-Tax Revenues-that government earns NOT from taxes, but from other activities?
A. Government-owned and controlled corporations (GOCCs) such as:
PAGCOR remittances
PCSO earnings
Dividends from GOCCS
LRT/MRT revenues
Manila Water / Maynilad concession fees
B. Fees and Charges such as:
Passport fees (DFA)
Driver's license fees (LTO)
NBI clearance fees
Court fees
C. Royalties & Shares from Natural Resources such as:
Mining royalties
Malampaya gas revenues
Quarry fees (LGU)
D. Privatization proceeds- Sale or lease of government assets or properties
A) A, C and D only
B) A, B, C and D
C) imports and exports
D) A and B only
E) A, B and C only
- 22. A type of inflation when the consumers desire to buy or purchase goods and services is greater than what the economy can produce.
A) Hyperinflation
B) Demand-Pull Inflation
C) Cost-Push Inflation
- 23. When the government revenues are insufficient to finance the growing budget requirements its last resort is ?
A. Public Debt
B. Public Borrowing
C. Treasury Bond
D. Corporate Bond
A) C only
B) A and B only
C) A, B and C only
- 24. Used as a tool of the Philippine government and is also used as an instrument to manipulate conditions in the economy.
A) Fiscal Policy
B) Taxation
C) Monetary Policy
- 25. used by the government to stimulate or depress the economy.
A) Fiscal Policy
B) Budget
C) Deficit Budget
- 26. Disposable income is _____________________?
A) A consumption determinant
B) An Investment Determinant
C) Savings
D) Investment
- 27. What is a common use of disposable income among Filipino households?
A. Paying off debts
B. Saving for emergencies
C. Spending on non-essential goods
D. Spending on services
A) A, B and D only
B) A and C only
C) A, B, C and D
D) A only
- 28. Hyperinflation is characterized by:
A) Stable prices
B) Deflation
C) Rapid and extreme increase in prices
D) Mild increase in prices
- 29. According to the Quantity Theory of Money, what is the primary determinant of the price level in the economy?
A) Interest Rates
B) Money Supply
C) GDP
D) Government Spending
- 30. Analysis of inflation is an empirical (based on what is experienced) relationship of unemployment to inflation.
A) The Quantity Theory Of Money
B) CPI- Consumer Price Index
C) Phillip's Curve
- 31. Refers to the legal obligation of the state to pay back the principal and interest to the holders of the predetermined rights in accordance with a certain schedule.
A) Foreign Aid
B) Public Borrowing/Public Debt
C) Budget Obligation
- 32. The term "ceteris paribus" in economics means:
A) The highest possible profit
B) The price at which demand equals supply
C) The best choice for consumers
D) All else being equal or held constant
- 33. In the Quantity Theory of Money Equation (MV=PT/PQ), What does "M" represent?
A) General Price Level
B) Physical Volume of goods and services produced
C) Supply of Money
D) Velocity of Money
- 34. Which of these are investment determinants?
A. Profit levels
B. Expectations
C. Interest Rates
D. Innovations
A) A, B, C and D
B) A only
C) A, C and D only
D) D only
- 35. The level of this factor of consumption can increase with more infusions in the circular flow.
A) Income
B) Consumption Framework
C) Population size
- 36. Spending of the government/expenditures is lower/less than The National fund/Budget.
A) Surplus Spending
B) Budget Deficit
C) Budget Surplus
- 37. Means of producing natural/organic goods.
A) Production
B) Agricultural Production
C) Essential Production
D) Manufacturing/industry Production
- 38. It is a key indicator of a household's financial health and is used to gauge economic well-being.
A) Savings
B) Income
C) Taxable Income
D) Disposable Income
- 39. allocated for the government prioritized projects.
A) Deficit Budget
B) National Budget
C) Taxes
- 40. What is cost-push inflation caused by?
A) Increase in aggregate demand
B) Increase in production costs (Cost of Production)
C) Increase in production efficiency c
D) Decrease in government spending
- 41. Personal income available for consumption with personal taxes excluded.
A) Personal Savings
B) Personal Taxes
C) Income
D) Disposable Income
- 42. Importance of disposable income.
A. Consumer/individual spending
B. Saving Rate
C. Standard of Living
D. Better Standard of Living
A) A only
B) A, B and D only
C) A and C only
D) A, B, C and D
- 43. 3.Factors Affecting Disposable Income:
A. Income Levels
B. Tax Policy
C. Saving Rate
D. Cost of Living
A) A, B and D only
B) B and D only
C) C only
D) A, B, C and D
- 44. Designed to measure monthly changes in the General Price level of commodities (Philippine Setting) that flow into wholesale trade intermediaries in metro Manila-During Trade Turnover.
A) Wholesale Price Index -WPI
B) Retail Price Index-RPI
C) Consumer Price Index- CPI
- 45. Which of the following is a cause of demand-pull inflation?
A) Decrease in consumer spending
B) Technological advancements
C) Increase in production efficiency
D) Increase in government spending
- 46. Means of producing processed goods.
A) Production
B) Agricultural Production
C) Essential Production
D) Manufacturing/industry Production
- 47. The shortfalls or disadvantages of the effects of inflation go to the following Except:____________
A) Individuals with fixed income
B) Depositors
C) Individuals extending loans
D) None of these
- 48. Sources of Government Funds/Budget.
A. INTERNAL SOURCES: Such as the CENTRAL BANK/BSP-Bangko Sentral NG PILIPINAS
B. EXTERNAL SOURCES: Such as Foreign Governments
/Foreign Aid, WB (World Bank), ADB (Asian Development Bank), IMF (International Monetary Fund)
C. Taxes Collected
D. Non-Tax Revenues
A) A B and C only
B) C only
C) A, B, C and D
- 49. The Philippines is under what kind of Economic System?
A) Free Market
B) Capitalism
C) Mixed Economy
D) Command Economy
- 50. Income earned by persons or households.
A) National Income
B) Disposable Income
C) Investment
D) Personal Income
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