Republic of the Philippines

Laguna State Polytechnic

Province of Laguna 30
VISION: The Laguna State Polytechnic University is a center for sustainable development
transforming lives and communities.
MISSION: LSPU Provides quality education through responsive instruction, distinctive research,
and sustainable extension and production services for improved quality of life towards nation
building.
QUALITY POLICY:LSPU delivers quality education through responsive instruction, distinctive
research, sustainable extension and production services. Thus we are committed with
continual improvement to meet applicable requirements to provide quality, efficient, and
effective services to the university stakeholders’ highest level of satisfaction through an
excellent management system imbued with the utmost integrity, professionalism and innovation.

MIDTERM EXAMINATION IN SOCSCI 4 (BASIC ECONOMICS WITH TAXATION)

INSTRUCTION: Choose the correct answer from the given choices. Write the LETTER that
corresponds to your answer.

1. Agrarian reform law of October 21, 1972 refers to:

a. PD 27
b. PD 957
c. EO 129-A
d. EO 129-Y
2. Valid transactions involving agricultural land except:
a. Sale to private parties, regardless of hectarages, executed before the effectivity of RA
6657 on June 15, 1988, provided the sale is registered with the Register of Deeds within
3 months from June 15, 1988
b. Sale to private parties executed after the effectivity of RA 6657 covering areas to be
retained in favor of transferees whose total landholdings, including the land to be
acquired, do not exceed 5 hectares
c. Sale in favor of government, Land Bank or Dept. of Agrarian Reform regardless of
hectarage; Sale by agrarian reform beneficiaries after 10 years from the issuance and
registration of land ownership award (CLOA)
d. Sale to private parties executed before the effectivity of RA 6657 covering areas to be
retained in favor of transferees whose total landholdings, including the land to be
acquired, do not exceed 5 hectares.
e. ALL OF THEM ARE VALID SALES
3. Tenants may be awarded 5 hectares of unirrigated land and _____if irrigated land.
a. 5 hectares
b. 6 hectares
c. 4 hectares
d. 3 hectares
4. The 2 criteria for carp coverage is suitability of the land for agriculture and
a. Its need for carp purpose
b. Its size and location
 c. Its possibility of acquisition
d. Abusive land owners
5. What is the cash payment in kind given by landowner or developer to tenant’s farm worker or
bonafide occupants to be affected by the DAR conversion?
a. Ejectment compensation fund
b. Tenant share remuneration
c. Disturbance compensation
d. Conversion assistance fund
6. Refer to land devoted to or suitable to agriculture as defined in RA 6657 and owned by private
natural or juridical persons.
a. Farm land
b. Cultivated farm land
c. Private land
d. Irrigated farm land
7. An enactment that gives municipalities the power to reclassify up to 15% of agricultural land not
covered by CARL to non-agricultural uses if it is deemed by the local council ( sanggunian ) to be
either no longer sound for agriculture or substantially greater value if used for residential,
commercial, or industrial purposes.
a. RA 7160
b. RA 7150
c. 1988 LGU
d. RA 7155
8. Has ruled that all agricultural lands that are already classified as commercial, industrial or
residential before June 15, 1988 no longer need any conversion clearance even if it is still
devoted to agricultural activity.
a. Republic Act 6657
b. Republic Act 7279
c. Ministry Order No. 39 series of 1985
d. DOJ Opinion No. 44 SERIES of 1990
9. Law that mandate DAR to approve or disapprove conversion.
a. EO 129-A
b. EO 101-B
c. EO 6557
d. EO 1081
10. Beneficiary of land may not sell, transfer, convey through hereditary succession said land for a
period of:
a. 5 years
b. 7 years
c. 10 years
d. 12 years
11. Gasoline taxes are typically earmarked for the financing of highway construction and repairs. It
is an example of ______________.
a. The Benefit Principle
b. The Ability-to-Pay Principle
c. The Equal-Distribution Principle
12. This progressive taxation approach places an increased tax burden on individuals, partnerships,
companies, corporations, trusts, and certain estates with higher incomes
a. The Benefit Principle
 b. The Ability-to-Pay Principle
c. The Equal-Distribution Principle
13. It is the smoothness or equality with which income is dealt out among members of a society.
a. The Benefit Principle
b. The Ability-to-Pay Principle
c. The Equal-Distribution Principle
14. The tax rates get higher as income increases.
a. Tax is proportional
b. Tax is regressive
c. Tax is progressive
15. The standard deduction is a fixed amount that is subtracted from taxable income
a. Tax is proportional
b. Tax is regressive
c. Tax is progressive
16. All consumers, regardless of income, pay the same fixed rate.
a. Tax is proportional
b. Tax is regressive
c. Tax is progressive
17. The following are characteristics of tax, except:
a. It is enforced contribution. Its payment is voluntary nature, and the imposition is
dependent upon the will of the person taxed.
b. It is generally payable in cash. This means that payment by checks, promissory notes, or
in kind is not accepted.
c. It is proportionate in character. Payment of taxes should be base on the ability to pay
principle; the higher income of the tax payer the bigger amount of the tax paid.
18. Buying of goods and services, is classified as to _______________
a. Subject matter
b. Who bears the burden
c. Scope
19. Tax of a fixed amount on individuals residing within a specified territory, without regard to their
property, occupation or business.
a. Subject matter
b. Who bears the burden
c. Scope
20. It is imposed by municipal corporations or local governments
a. Subject matter
b. Who bears the burden
c. Scope
21. One the primary purpose of which is to procure and distribute commodities to members and
non-members
a. Credit Cooperatives
b. Consumer Cooperative
c. Producers Cooperative
22. _____________ is one which engage in the supply of production input to members and
markets their products.
a. Producers Cooperative
b. Marketing Cooperative
c. Service Cooperative
23. _______________ is one which engages in medical and dental care, hospitalization,
transportation and insurance.
a. Producers Cooperative
b. Marketing Cooperative
c. Service Cooperative
24. _________________ is a primary cooperative which promotes and advocates cooperatives
among its members and the public through socially-oriented projects, education and training,
research and communication, and other similar activities to reach out to its intended
beneficiaries.
a. Producers Cooperative
b. Service Cooperative
c. Advocacy Cooperative
25. The members of which are natural person of legal age
a. Primary
b. Secondary
c. Tertiary
26. The cooperative Marketing Law enacted and approved on December 9, 1927
a. Republic Act 2425
b. Republic Act 821
c. Republic Act No. 6938
27. Cooperatives shall enjoy the privilege of depositing their sealed cash boxes or containers,
documents or any valuable papers in the safes of the municipal or city treasurers and other
government offices free of charge, and the custodian of such articles shall issue a receipt
acknowledging the articles received duly witnessed by another person. This are the privilages
registered under ___________.
a. Republic Act 2425
b. Republic Act 821
c. Republic Act No. 6938
28. Cooperatives organized among government employees, not with standing any law or
regulation to the contrary, shall enjoy the free use of any available space in their agency,
whether owned or rented by the Government.
a. Republic Act 2425
b. Republic Act 821
c. Republic Act No. 6938
29. This law established a system of liberal credit which is specially designed to meet the needs
of the small farmer.
a. Republic Act 2425
b. Republic Act 821
c. Republic Act No. 6938
30. Which of the following is the interrelated objective of RA 821?
a. To assist small farmers in seaming liberal credit.
b. To promote the effective groupings of farmers into cooperative associations.
c. Both a and b