Social Studies 9

All kinds of money are issued by the government. The government guarantees the use of money in all kinds of transactions. This is called:
a. fiat money
b. money in circulation
c. credit money
d. legal tender

a. fiat money

Price increase is part of our lives. Many people suffer because of high price of commodities. The continuing increase in the general price level of commodities is called:

a. deflation

b. inflation

c. depreciation

d. devaluation

b. inflation

Fiscal policy refers to government decisions on ________.
a. interest rates
b. trade policy
c. money supply
d. spending and taxation

d. spending and taxation

The government needs funds. People must pay their taxes because:
a. if is the source of wealth of some people
b. it is according to the law |
c. it is the main source of government revenues
d. it is the share of the government

c. it is the main source of government revenues

Definition

People save money for the future. They deposit their money in the bank because:

a. their money is safe there
b. they can easily withdraw their money
c. they want the banking institution to develop
d. they believe in the banking institution

—

a. their money is safe there

Unexpected inflation is most harmful to _____.

a. Borrowers
b. Business Owners
c. Exporters
d. Fixed income earners

d. Fixed income earners

Price increase is a continuous problem besetting the economy. There are factors that cause price increase; one of these is production cost. The increase in wages and the price of raw materials increase the production costs. This cause of inflation is called _____.

a. demand pull
b. stagflation
c. cost push
d. cost pull

c. cost push

There are different tax reforms in our country, one of which is Value Added Tax. The main reason why VAT was expanded and reformed is:

a. to cover all the products and services
b. to increase the government revenues
c. to make people suffer
d. to make the tax uniform

b. to increase the government revenues

In an open economy, exports are considered a(n) _____.

a. Leakage
b. Injection
c. Subsidy
d. Transfer payment

b. Injection

The government has its duties and functions to perform. One of these is to decide on revenues and expenditures which is the concern of _____.

a. Public Finance
b. Public Revenues
c. Public Expenditures
d. Public Borrowing

a. Public Finance

Which approach best shows the contribution of each industry to the economy?

a. Factor Income
b. CPI
c. Final Expenditure
d. Industrial origin

d. Industrial origin

Which of the following is the main reason why people choose to use money and disregard the use of barter?

a. to accumulate more wealth
b. to make exchange of goods faster
c. to modernize the economic activities
d. to know the value of money

b. to make exchange of goods faster

Economy is examined through its entirety. It concerns the aggregate demand and aggregate supply. What branch of economics deals with this study of the economy?

a. microeconomics
b. economics
c. econometrics
d. macroeconomics

b. economics

Monetary policy is implemented by the _____.

a. legislature
b. government
c. central bank
d. private firms

c. central bank

Second-hand goods are excluded from GNP because they _____.

a. are not taxed
b. reduce income
c. are illegal
d. were already counted

d. were already counted

The government measures the GNP in order to know the status of the production in the economy. Which of the following is not an approach to measure GNP?

a. factor income
b. industrial origin
c. final expenditure
d. investment

d. investment

Budget is important to all institutions. The budget has to undergo a process before it is approved. The process in creating a national budget is important because _____.

a. it indicates the amount of budget
b. the president prepares the budget
c. the budget is examined thoroughly
d. it is approved by the congress

c. the budget is examined thoroughly

The circular flow of goods and services describes the economic activities of the country. There are inflows like income, consumption, and investment in the circular flow. The savings, subsidy, transfer payment, and goods and services are considered _____.

a. outflow
b. money flow
c. continuous
d. inflow

a. outflow

Many people believe that inflation is bad for the economy, but there are those who benefit from inflation. Which of the following statements is a benefit gained from inflation?

a. increase of interest rate
b. increase of income
c. depreciation of income
d. additional expenses

b. increase of income

Income earned by Filipinos working abroad directly increases _____.

a. GDP
b. GNP
c. PPP
d. CPI

b. GNP

Which activity increases GDP but not GNP?

a. Filipino working overseas
b. Local firm exporting
c. Government infrastructure spending
d. Foreign firm producing locally

d. Foreign firm producing locally

Government revenues are spent to various services to attain development. Before spending its revenues, the government should have a plan on how to use the government revenues. This plan is called _____.

a. appropriation
b. debt payment
c. budget
d. fiscal policy

c. budget

Which tax is paid directly by individuals?

a. VAT
b. Excise
c. Sales tax
d. Income tax

a. VAT

Workers and companies pay their taxes to the government. There are different taxes levied to people, goods, services, and companies. Tax levied to workers from their wages is called _____.

a. Ad Valorem Tax
b. Excise Tax
c. Specific Tax
d. Income Tax

d. Income Tax

The government is part of the circular flow of goods and services. One of its roles is to collect taxes from business firms. In what way can the government balance the economy?

a. stop collecting taxes
b. give subsidy to business firms
c. provide another market
d. give transfer payment

b. give subsidy to business firms

One of the characteristics of money is uniformity. Which of the following appears as the back design of 1,000 pesos?

a. Manunggul Jar cover and Langgal
b. Tubbataha Reefs Natural Park
c. Bangko Sentral ng Pilipinas
d. Scenes from Aquino’s life

b. Tubbataha Reefs Natural Park

Money has various functions. If people acquired certain products with the use of money, then it functions as _____.

a. store of value
b. standard of deferred payment
c. medium of exchange
d. standard of value

c. medium of exchange

Real and nominal GNP are types of GNP. Nominal GNP is always higher than real GNP because _____.

a. production is increasing
b. production is improving
c. production is based on current prices
d. production is based on constant prices

c. production is based on current prices

The government reports that GNP is increasing. Some people say it is a sign for the economy to develop. But development can be more evident if _____.

a. the living condition of people is better
b. there is peace and order in the country
c. the gap between the rich and poor is decreasing
d. there is opportunity for the government to have foreign loans

c. the gap between the rich and poor is decreasing

Gross National Product (GNP) is one of the economic indicators that measures the economic performance of the country. Which of the following sentences defines the GNP?

a. number of goods and services produced by the country
b. final goods and services which are produced within the country
c. total market value of all final goods and services produced in the country for a given period of time
d. goods produced by foreign workers

c. total market value of all final goods and services produced in the country for a given period of time

The government is part of the circular flow of goods and services. One of its roles is to collect taxes from business firms. In what way can the government balance the economy?

a. stop collecting taxes
b. give subsidy to business firms
c. provide another market
d. give transfer payment

b. give subsidy to business firms

How does the circular flow of the economy illustrate the interdependence between households and firms?

a. By showcasing how households provide factors of production to firms in exchange for goods and services
b. By demonstrating how firms generate income for households through employment opportunities
c. By highlighting the role of government in regulating the flow of resources and income
d. By showing how financial institutions facilitate transactions between households and firms

a. By showcasing how households provide factors of production to firms in exchange for goods and services

In what way does the circular flow model help explain the concept of leakage in the economy?

a. By illustrating how government spending injects additional income into the economy
b. By showing how households save a portion of their income instead of spending it
c. By demonstrating how firms invest in capital goods to enhance production capacity
d. By depicting how imports reduce the amount of money circulating within the domestic economy

b. By showing how households save a portion of their income instead of spending it

A rise in fuel prices increasing transport costs is an example of _____.

a. Creeping inflation
b. Demand-pull inflation
c. Hyperinflation
d. Cost-push inflation

————————————
Term
d. Cost-push inflation

d. Cost-push inflation

Which tax is mainly used to fund public services?

a. Progressive tax
b. VAT
c. Import tax
d. Income tax

b. VAT

Which is an example of contractionary fiscal policy?

a. Increased public work
b. Tax reduction
c. Reduce government spending
d. Increased subsidies

c. Reduce government spending

Wages and salaries are directly included in the _____.

a. Final expenditure approach
b. Industrial origin approach
c. GDP deflator
d. Factor income approach

d. Factor income approach

Which approach adds all of the industries’ output like agriculture and industry?

a. Final expenditure approach
b. Industrial origin approach
c. CPI deflator
d. Factor income approach

b. Industrial origin approach

To reduce inflation, the central bank should _____.

a. Tighten monetary policy
b. Increase money supply
c. Lower reserve requirements
d. Increase government spending

a. Tighten monetary policy

It refers to the continuous movement of goods, services, and money between households and firms in an economy.

Circular flow of income

This measure includes the value of all final goods and services produced within a country, regardless of ownership.

Gross Domestic Product (GDP)

It measures the average change in prices of a fixed basket of consumer goods and services over time.

Consumer Price Index (CPI)

This type of inflation happens when aggregate demand is greater than aggregate supply.

Demand-pull inflation

This is an increase in the general price level that reduces the purchasing power of money.

Inflation