Taxation And Purchasing Power Quiz

30 Questions | Total Attempts: 39

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Taxation And Purchasing Power Quiz

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Questions and Answers
  • 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

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