Don Mariano Marcos Memorial State University

Mid La Union Campus

COLLEGE OF TECHNICAL EDUCATION
San Fernando City, La Union

LET Review 2017

Basic Economics, Taxation, Agrarian Reform and Cooperative

1. The theory that population increases by geometrical ratio while the means of
subsistence increases by arithmetical ratio is attributed to?
a. Karl Marx c. Emile Durkheim
b. Robert Malthus d. Aristotle
2. Which economic system is based on free enterprise?
a. Globalism c. Capitalism
b. Mixed economies d. Communism
3. Which is a safeguard against unfair trade practices like short-weighing?
a. Total Quality Movement c. Consumer vigilance
b. Consumerism d. Substandardization
4. Which follows Pres. Garcias Filipino First Policy? Filipinos
a. Should buy and consume Filipino products only
b. Should not contribute to the brain drain problem
c. Should be selective in the entry in the entry of foreign professionals in
the country
d. Were to be given first preference in all matters related to the economic
development of the country
5. In general, microeconomic theory assumes that the firms attempt to
maximize the difference between ______.
a. total revenue and accounting costs.
b. price and marginal cost.
c. total revenues and economic costs.
d. economic costs and average cost.
6. When parents decide to send their children to a private school and pay
their tuition fee instead of sending them to public school, they dont get their
share in their benefit derived from the taxes they pay. This is a case of
____________________.
a. Social injustice c. Double taxation
b. Double jeopardy d. Social inequity
7. The primary purpose of taxation is to _____________________.
a. Raise revenue for the support of the government.
b. Reduce inequalities in wealth and incomes.
c. Fortify the government against invaders.
d. Make the country a leading industrialized country in the world.
8. Which term refers to duties payable on goods, whether imported or
exported?
a. Assessment c. Subsidiary
b. Tariff d. Revenue
9. What does capital in economics refer to?
a. Investment and loss computed
b. Outcome of business transaction
c. Money/ machines invested to transact business
d. Profit and labor spent spent for business
10. While in the capitalist system, to the strongest goes the spoil, what
happens in the cooperative system?
a. All benefits are shared to the members proportionate to the shared
capital.
b. Goods are distributed among the members but benefiting mostly the
policymaking body.
c. Goods are distributed among the members.
d. Goods are distributed among the members but elected and appointed
officials get more to comprehensive their service.
11. Which is an unlawful act of escaping from payment of taxes?
a. Evasion c. Exemption
b. Avoidance d. Shifting
12. I rent out for Php 10, 000 per month my only building and lot to the
Jesus is Lord Group which uses it exclusively for religious purposes. I
am exempt from payment of ________________.
a. Property tax c. Income tax
b. Professional tax d. Community tax
13. Basically, the Philippine agrarian reform program is a question of
_______________.
a. Land distribution c. Graft and corruption
b. Nepotism and corruption d. Environmental degeneration
14. The movement of a person or group of persons to another place more or
less for permanent residence is
a. migration c. population change
b. population growth d. ecological movement
15. The maximum price that can be legally changed for a good or service is
called _____.
a. minimum wage c. legal wage
b. price floor d. price ceiling
16. Which explains GNP?
a. The total value in pesos of goods and services produced during the year.
b. The total value in pesos of goods produced during the year.
c. The total value in pesos of services produced during the year.
d. The total value in pesos of goods and services produced for 2 quarters.
17. Tomatoes as off season and so price for tomatoes are up. Which
law/principle in Economics explains it?
a. Substitution effect c. Principle of marginal utility
b. Law of cause and effect d. Law of supply and demand
18. When one company controls the supply of sugar, which term applies?
a. Monopoly c. Economic stability
b. Inflation d. Equilibrium
19. Which assumption underlies the Comprehensive Agrarian Reform
Program?
a. There is so much poverty in the country because of overpopulation.
b. The wealth of the country is concentrated in the hands of a few.
c. Our country has very few landed people and very many landless.
d. People are more productive if they own what they cultivate
20. What economic policy in China propelled it to becoming the second
industrialized nation in the world?
a. Welfare socialism
b. Industrialism
c. Socialist capitalism
d. Maoist communal ownership
21. EXCEPT for the _________ factor, these are the facets of inclusivity
identified for eradicating extreme poverty in the Philippines.
a. Sectoral c. Locational
b. Spatial d. Temporal
22. For spatial inclusivity, the ________ program can limit the population to
widen habitation space for people.
a. Planned parenthood c. Sterilization
b. Contraceptives d. Free condoms
23. Which country is NOT a member of ASEAN?
a. Vietnam c. China
b. Cambodia d. Myanmar
24. In 1972 the Tobacco monopoly was established and there was a massive
cultivation of tobacco EXCEPT in this province.
a. Nueva Ecija c. Cagayan
b. Batangas d. Marinduque
25. By the end of the 19 century the most notable land owners in the
th

Philippines owning up to a total of 172,000 hectares were _______.

a. Mestizos c. Spanish friars
b. Spanish hacienderos d. Natives
26. The ASEAN National Qualification Framework shall be implemented by
member countries in _______.
a. 2015 c. 2016
b. 2018 d. 2020
27. Which Executive Order institutionalized the Philippine Qualification
Framework
a. Executive Order No. 43 c. Executive Order No. 83
b. Executive Order No. 80 d. Executive Order No. 42
28. Foreign Direct Investments (FDI) in the Philippines is the lowest in the
ASEAN according to a report of the Foundation for Economic Freedom.
Which provision in the constitution is planned to be amended by
Congress?
a. Open door policy on the use of natural resources
b. Economic growth based on consumption-driven
c. Restriction on foreign ownership and investments
d. Restriction on borderless competition
29. The concept of _______ was NOT part of Deng Xiaopengs 1984 Market
Revolution in China.
a. Market prices c. All-out capitalism
b. Private business d. Dividend income
30. The ____ of a cooperative establishes how its day-to-day operations are
governed.
a. Bylaws c. Proprietary lease
b. Articles of Incorporation d. Charter
31. An autonomous association of persons united voluntarily to meet their
common economic, social, and cultural needs and aspirations through a
jointly-owned and democratically-controlled enterprise
a. Government c. Union
b. Cooperative d. None of the Above
32. Cooperatives are owned, managed, and patronized by _______.
a. Members c. Proprietors
b. Manager d. None of the above
33. Cooperatives serve best when they answer the needs of the_______.
a. Members c. Proprietors
b. Manager d. None of the above
34. A type of coop that caters lending services.
a. Credit Coop c. Producers Coop
b. Consumers Coop d. Multi-purpose coop
35. A type of coop that is formed by farmers to save money selling of crop
and other products of farmers
a. Credit Coop c. Producers Coop
b. Consumers Coop d. Multi-purpose coop
36. What is the primary capital of cooperatives?
a. Member's share capital c. Donations
b. Savings d. None of the above
37. Accounts receivable is under the _______ account.
a. Assets c. Liabilities
b. Income d. None of the above
38. What is government agency that regulates Cooperatives?
a. Cooperative Development Authority
b. Phil. Federation of Credit Cooperatives
c. Cooperative Authority of the Phils
d. None of the Above
39. A cooperative is formed because of ______.
a. Mutual benefit c. Business
b. Credit d. None of the above
40. A type of coop that caters different services such as lending, savings,
marketing, etc.
a. Credit Coop c. Producers Coop
b. Consumers Coop d. Multi-purpose coop
 41. A type of Coop that focuses on retail business such as grocery, general
merchandise, etc.
a. Multi-purpose coop c. Consumers Coop
b. Producers Coop d. Credit Coop

42. What is the excess amount of revenues that will be shared by the
members?
a. Profit c. Share
b. Dividends d. None of the above
43. What was the first law on crop sharing which legalized the 50-50 share
between landlord and tenant with corresponding support to tenants
protecting them against abuses of landlords?
a. RA 4054 or Rice Tenancy Law
b. RA 3844 or Agricultural Land Reform Code
c. RA 6657 or Comprehensive Agrarian Reform Law
d. RA 8532 or Agrarian Reform Fund Bill
44. What was the executive that says that Land Settlement Development
Corporation (LASEDECO) was established to accelerate and expand the
peasant resettlement program of the government?
a. RA 355 c. RA 821
b. RA 1160 d. RA 3844
45. Who considered the Father of Agrarian Reform?
a. Diosdado Macapagal c. Corazon Aquino
b. Ferdinand Marcos d. Manuel Roxas
46. For Adam Smith, the ________ of a free market economy will keep prices
low that guides the economy to prosperity.
a. Invisible hand
b. Beacon of consumers
c. Common interest
d. Automatic check
47. Which problem of resources falls under the task of economic allocation?
a. Quality
b. Scarcity
c. Standards
d. Excellence
48. Non-economic wants and needs revolve around the issue of _________.
a. Job underemployment
b. High prices of commodity
c. Womens role in the society
d. Lowered family income
49. In Economics, economic wants and needs are exemplified by _________.
a. Plight of political prisoners
b. Movement of gay rights
c. Excellence in the profession
d. OFW work remittance
50. The following are the elements that make possible nations to produce
goods and services EXCEPT one.
a. Labor force
b. Capital
c. Natural Resources
d. Geographical location