The Licensure Examination for Teachers (LET) in the Philippines evaluates aspiring educators’ knowledge and competencies in various subjects, including General Education. In the Social Science component, examinees must have a solid grasp of Basic Economics, Taxation, and Agrarian Reform, as these topics are essential in understanding economic policies, government revenue, and land distribution in the country.
Basic Economics covers fundamental economic concepts such as supply and demand, factors of production, economic systems, market structures, and the role of government in the economy. Examinees must also be familiar with economic indicators like GDP, inflation, and unemployment, as well as key economic theories and principles.
Taxation focuses on the principles and types of taxes in the Philippines, including income tax, value-added tax (VAT), and excise tax. The examination may include topics on the importance of taxation in nation-building, the process of tax collection, and the roles of agencies such as the Bureau of Internal Revenue (BIR). Understanding the Philippine Tax Code and recent tax reforms, such as the TRAIN Law, is also beneficial.
Agrarian Reform covers laws and policies related to land distribution and social justice, particularly the Comprehensive Agrarian Reform Program (CARP) and its amendments. Examinees should understand land tenure systems, land redistribution processes, and the impact of agrarian reform on rural development and poverty alleviation.
PROFESSIONAL TEACHER REVIEWER
Welcome to our Professional Teacher Reviewer. In this session, you'll have the opportunity to test your understanding of key concepts in Basic Economics, Taxation, Agrarian Reform. The quiz consists of multiple-choice questions covering various topics. Pay close attention to each question and select the best answer. After completing the exam, check the video below for the answer key and explanations.
1. What is the fundamental economic problem that every society faces?
A. Inflation
B. Monopoly
C. Unemployment
D. Scarcity
2. Which economic system is characterized by private ownership of resources and profit-driven enterprises?
A. Socialism
B. Communism
C. Capitalism
D. Mixed Economy
3. What law states that "when the price of a good increases, the quantity demanded decreases, ceteris paribus"?
A. Law of Supply
B. Law of Demand
C. Law of Diminishing Returns
D. Law of Equilibrium
4. What type of tax is imposed on an individual’s income?
A. Excise Tax
B. Sales Tax
C. Income Tax
D. Value-Added Tax (VAT)
5. What is the primary goal of taxation?
A. To accumulate government wealth
B. To encourage foreign investments
C. To reduce business profits
D. To support social services and development programs
6. What type of tax is Value-Added Tax (VAT)?
A. Direct Tax
B. Indirect Tax
C. Progressive Tax
D. Proportional Tax
7. Under the Comprehensive Agrarian Reform Program (CARP), what is the land ownership limit per farmer-beneficiary?
A. 3 hectares
B. 5 hectares
C. 7 hectares
D. 10 hectares
8. Which agency is primarily responsible for implementing agrarian reform in the Philippines?
A. Department of Environment and Natural Resources (DENR)
B. Land Registration Authority (LRA)
C. Department of Agriculture (DA)
D. Department of Agrarian Reform (DAR)
9. What is the main objective of agrarian reform?
A. To redistribute land to landlords
B. To improve the living conditions of farmers and promote social justice
C. To increase land tax collection
D. To privatize agricultural lands
10. What is the term for the government's right to take private property for public use with just compensation?
A. Eminent Domain
B. Police Power
C. Taxation
D. Land Reform
11. What economic indicator measures the total value of all goods and services produced within a country in a given period?
A. Gross National Income (GNI)
B. Gross Domestic Product (GDP)
C. Consumer Price Index (CPI)
D. Purchasing Power Parity (PPP)
12. Which law mandates the land reform program in the Philippines?
A. RA 6975
B. RA 3019
C. RA 1425
D. RA 6657
13. In taxation, what principle states that those who benefit more from public services should pay higher taxes?
A. Ability-to-Pay Principle
B. Benefit Principle
C. Equal Sacrifice Principle
D. Proportionality Principle
14. Which of the following is an example of a progressive tax system?
A. Income Tax
B. Excise Tax
C. Sales Tax
D. VAT
15. What economic concept refers to the decline in the purchasing power of money over time?
A. Inflation
B. Deflation
C. Recession
D. Stagflation
16. What is the term for the total market value of goods and services produced by a country’s residents, including those working abroad?
A. Gross Domestic Product (GDP)
B. Purchasing Power Parity (PPP)
C. Consumer Price Index (CPI)
D. Gross National Income (GNI)
17. What government agency is responsible for tax collection in the Philippines?
A. Department of Finance (DOF)
B. Bureau of Internal Revenue (BIR)
C. Bureau of Customs (BOC)
D. Bangko Sentral ng Pilipinas (BSP)
18. What is the economic term for a prolonged period of rising prices, reducing the purchasing power of money?
A. Inflation
B. Deflation
C. Recession
D. Depression
19. Which tax is levied on goods manufactured or produced in the Philippines for domestic sale or consumption?
A. Excise Tax
B. Estate Tax
C. Capital Gains Tax
D. Withholding Tax
20. What is the name of the tax imposed on the transfer of property or wealth from a deceased person to their heirs?
A. Sales Tax
B. Property Tax
C. Estate Tax
D. Documentary Stamp Tax
21. What type of economic system does the Philippines have?
A. Pure Capitalism
B. Command Economy
C. Mixed Economy
D. Traditional Economy
22. What is the primary role of the Bangko Sentral ng Pilipinas (BSP)?
A. Collect taxes
B. Manage public spending
C. Regulate monetary policy and ensure financial stability
D. Provide loans to small businesses
23. What economic indicator measures changes in the cost of living by tracking the prices of commonly purchased goods and services?
A. Gross Domestic Product (GDP)
B. Consumer Price Index (CPI)
C. Inflation Rate
D. Exchange Rate
24. What is the primary goal of the Comprehensive Agrarian Reform Program (CARP)?
A. To increase government revenue through land taxes
B. To redistribute urban properties to the poor
C. To encourage foreign investment in the agricultural sector
D. To modernize agriculture and eliminate rural poverty
25. Under CARP, how are landowners compensated for their land?
A. Full cash payment
B. Government bonds and cash
C. Free land titles
D. Government loans
26. Which law extended the CARP program beyond its original 10-year implementation period?
A. RA 9700
B. RA 6657
C. RA 3844
D. RA 1400
27. What is the primary reason for implementing progressive taxation?
A. To reduce the government’s budget deficit
B. To ensure that higher-income individuals contribute more taxes
C. To increase inflation rates
D. To encourage business monopolies
28. What is the process called when the government borrows money from local or international sources to fund public projects?
A. Fiscal Policy
B. Monetary Policy
C. Government Borrowing
D. Public Expenditure
29. What is the economic policy that involves government spending and taxation to influence the economy?
A. Fiscal Policy
B. Monetary Policy
C. Exchange Rate Policy
D. Supply-Side Policy
30. Which of the following is NOT a form of taxation?
A. Income Tax
B. Excise Tax
C. Tariffs
D. Subsidies
WATCH THE VIDEO FOR THE ANSWER KEY AND EXPLANATION
Please don't forget to SUBSCRIBE!