Taxation And Purchasing Power Quiz
.
- 1.Purchasing power is measured by
- A.
Income
- B.
Inlation
- C.
Comparing income to cost of living
- D.
Comparing inflation to income
- 2.What is the primary determinant of a person’s earning potential?
- A.
Education
- B.
Age
- C.
Sex
- D.
Race
- 3.What is measured by comparing income to the relative cost of a standard set of goods and services in different geographic areas?
- A.
Purchasing Power
- B.
Pricing
- C.
Inflation
- D.
Competition
- 4.What is inflation?
- A.
A measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year
- B.
What you do to a basketball.
- C.
The comparison of income versus the relative cost of a standard set of goods and services in different geographic areas.
- D.
The measure of how much money you need compared to previous years
- 5.It measures changes in the price level of market basket of consumer goods and services purchased by households
- A.
Consumer Price Index
- B.
Inflation
- C.
Purchasing Power
- D.
Gross National Product
- 6.Tukmol is not optimistic that he will find a job and stops actively seeking employment. What kind of unemployment is this?
- A.
Frictional
- B.
Seasonal
- C.
Structural
- D.
Cyclical
- 7.Oplok was laid off from his factory job during the recession. What kind of unemployment is this?
- A.
Cyclical
- B.
Seasonal
- C.
Structural
- D.
Frictional
- 8.Bisdak is an unemployed architect in California but there is a strong demand for architects in Texas. What type of unemployment is this?
- A.
Structural
- B.
Cyclical
- C.
Seasonal
- D.
Frictional
- 9.A farmer is looking for work in winter when there is little work on the farm. What type of unemployment is this?
- A.
Cyclical
- B.
Frictional
- C.
Seasonal
- D.
Structural
- 10.A programmer quits his job to look for another. What type of unemployment is this?
- A.
Frictional
- B.
Srtuctural
- C.
Cyclical
- D.
Seasonal
- 11.Which of the following would be included as a member of the labor force?
- A.
A full time college student.
- B.
A recent high school graduate looking for a first job.
- C.
A homemaker contributing 15 hours per week as a volunteer worker in a hospital.
- D.
A retired school teacher collecting social security benefits.
- 12.Unemployment caused by a recession is called:
- A.
Frictional
- B.
Cyclical
- C.
Structural
- D.
Seasonal
- 13.Frictional unemployment often occurs when:
- A.
The economy enters a recession.
- B.
People first enter the labor force.
- C.
People are discriminated against.
- D.
People lose a job because their skills are no longer needed.
- 14.Workers at a steel plant are laid off because the economy is weak and the demand for products requiring steel has fallen. What type of unemployment best describes the workers?
- A.
Cyclical unemployment.
- B.
Full unemployment.
- C.
Structural unemployment.
- D.
Frictional unemployment.
- 15.When the aggregate supply of goods and services decreases because of an increase in production costs, it results in:
- A.
Cost-Push Inflation
- B.
Demand-Pull Inflation
- C.
Deflation
- D.
Frictional Unemployment
- 16.A ____________ is one that uses more than one means of propulsion - that means combining a petrol or diesel engine with an electric motor.
- A.
Hybrid vehicle
- B.
electric vehicle
- C.
Truck
- D.
Jeep
- 17.An ________ tax is an indirect tax on the sale of a particular good or service such as fuel, tobacco and alcohol, goods that have negative externalities or are non-essentials.
- A.
Excise
- B.
Income
- C.
Tariff
- D.
Local
- 18.Which of the following are not covered by excise tax under TRAIN?
- A.
Bear Brand Milk
- B.
Nestea Iced Tea
- C.
Gatorade
- D.
Lipovitan
- 19.Taxpayers with annual taxable income of ______________ and below are exempted from paying personal income tax
- A.
250,000
- B.
25,000
- C.
500,000
- D.
100,000
- 20.Major highways, expressways, and flood control projects are undertaken by which government agency?
- A.
Department of Public Works and Highways
- B.
Department of Trade and Industry
- C.
Department of Budget
- D.
Department of Agriculture
- 21.A tax whose burden of paying the tax is passed on to others
- A.
Indirect tax
- B.
Direct tax
- C.
Income tax
- D.
Withholding tax
- 22.A tax on imported goods/commodities
- A.
Customs duties
- B.
Local tax
- C.
License fee
- D.
Ad valorem tax
- 23.It is a legal strategy that allows a national or local government to seize private property for public use. The seizing authority must pay fair market value for the property seized.
- A.
Eminent Domain
- B.
Police Power
- C.
Taxation
- D.
Repo
- 24.A fee paid for some liberty or privilege of passing over a highway or bridge
- A.
Toll
- B.
Tax
- C.
Penalty
- D.
License fee
- 25.___________ are an additional type of tax you might have to pay in addition to normal real estate taxes for improvements that benefit your local area.
- A.
Special Assessment
- B.
Toll
- C.
License Fee
- D.
Tax Planning
Questions: 20 | Attempts: 2109 | Last updated: Mar 22, 2022
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