DMC COLLEGE FOUNDATION

Sta. Filomena, Dipolog City

1st Semester 2017 - 2018

SCHOOL OF BUSINESS AND ACCOUNTANCY

HIGHER EDUCATION DEPARTMENT Economics 1

FINAL EXAMINATION Earl Russell S. Paulican

NAME: ___________________________________________ SCORE: _______________________

COURSE/YEAR: ______________________________ DATE : ____________________

“If you have no money, use your brain, if you have no brain, sweat it out”
-Japanese Phrase-

Test I. MULTIPLE CHOICE. Complete the correct thought of each statement by writing the CAPITAL LETTER
corresponding to your answer on the space provided before each item. Any form of erasure or alteration will
invalidate your answer. (2 points each)

_____1.) Which of the following statements is not correct?

A. The power to ta is inherent in the existence of the government which could be exercised even without its
provision in the Constitution.
B. Taxation is the strongest among the inherent powers of the State and considered as an absolute power.
C. Constitutional provisions regarding taxation may limit the exercise of the power of taxation.
D. Taxes appropriated for National Defense may be regarded as for public purpose.
______2.) Which of the following could not exercise the levying function of taxation?
A. City Council B. Provincial Board C. Provincial Governor D. Congress
______3.) Which of the following statements is correct?
Statement 1: Taxation power could readily be exercised by the State upon its existence.
Statement 2: Any provision in the Constitution regarding taxation merely constitutes limitations upon the
supremacy of taxation power.
A. Both statements are correct.
B. Statement 1 is correct but statement 2 is wrong.
C. Statement 1 is wrong while statement 2 is correct.
D. Both statements are wrong.
______4.) Which of the following statements is not correct?
A. In the absence of any Constitutional provisions, the power of taxation is unlimited except for the restrictions of
the inherent limitations.
B. The power of taxation is plenary, comprehensive and most supreme among the inherent powers of the State.
C. The exercise of taxation is also restricted by the sense of responsibility among members of the law-making body.
D. The power of taxation exists separately from the State, and as such could be exercised by the President even
without its provision in the Constitution.
______5.) Which of the following generally serves the regulatory function of taxation.
A. Real Estate Tax B. Income Tax C. Custom Duties D. Estate Tax
______6.) Which of the following could not be considered as a purpose of taxation?
A. To raise revenue to support the government.
B. To distribute the wealth of the nation.
C. To check inflation.
D. To regulate certain activities.
______7.) Which of the following is not a National Revenue Tax?
A. Income Tax B. Donor’s Tax C. Estate Tax D. None of the above
______8.) Which of the following is an Internal Revenue Tax?
A. Value Added Tax B. Percentage Tax C. Excise Tax on Imported items D. All of the Above
______9.) Taxes are public money which should be used for public purposes. Which of the following is not regarded as
for public purposes?
A. Appropriation for public education
B. Appropriation for Comprehensive Agrarian Reform Program of the Government
C. Appropriation for all the Churches in the Philippines
D. Appropriation for governmental projects
______10.) Which restriction on the power of taxation limits its imposition on properties which are within physical
boundaries imposing it?
A. Inherently legislative

GOD Bless 
 B. Territorial jurisdiction
C. International comity
D. Equal protection of law
______11.)Which of the following is considered as a tax administrative function?
A. Collection of Taxes
B. Fixing a tax rates
C. Prescribing the date and place of payment of tax
D. Determination of the subject or object of taxation
______12.) The determination of the tax base in accordance with pertinent tax law is a(n)
A. Imposition aspect of taxation
B. Assessment aspect of taxation
C. Collection aspect of taxation
D. Payment of taxes
______13.) Which of the following could exercise the levying aspect of taxation?
A. Barangay Council
B. City Mayor
C. Judiciary
D. The President of the Philippines
______14.) Which tax principle is described in the statement “The more income is earned by the taxpayer, the more
tax he has to pay”?
A. Fiscal Adequacy C. Theoretical Justice
B. Administrative Feasibility D. All of the Above
______15.) Which Constitutional limitation is being complied within the serving of serving of assessment notice to
delinquent taxpayer?
A. Due Process of law
B. Equal protection of law
C. Rule of Uniformity
D. Non-impairment clause
______16.) Which of the following pertains to the provision in the fundamental law of the land restricting the
exercise of the power of taxation?
A. International Comity
B. Territorial Jurisdiction
C. Inherent Limitation
D. Constitutional limitation
______17.) Which of the following pertains to the Constitutional provision requiring that tax apportionment must be
more or less just in the light of the taxpayer’s ability to shoulder the tax burden in accordance to his wealth, property
and income, or proportionate to the benefits he received from the government?
A. Due process of law
B. Equal protection of law
C. Equity in taxation
D. Rule of uniformity in taxation
______18.) Which of the following pertains to the Constitutional guarantee which provides that all taxable articles and
properties of the same class should be taxed at the same rate.
A. Equity in taxation
B. Rule of Uniformity in taxation
C. Equal protection of law
D. Due process of law
______19.) Which constitutional provision requires that all persons subject to legislation should be treated alike under
similar circumstances both in privileges conferred and liabilities imposed?
A. Equity in taxation
B. Equal protection of law
C. Due process of law
D. For public purposes
______20.) Which limitation on the power of taxation inherently implies that the State’s primary concern is the
common good of the people?
A. Equity in taxation
B. Equal protection of law
C. Due process of law
D. For public purposes
______21.) Which of the following restrictions on the power of taxation recognizes that the country’s tax laws shall
not be applied to the property of foreign government?
A. Taxation is inherently a legislative function
B. Exercise of taxation is subject to international comity
GOD Bless 
 C. Due process of law
D. Equal protection of law
_____22.) Which of the following limitations on the power of taxation restricts the delegation of taxation power to
those ministerial and advisory in nature, such as valuation and assessment of object of taxation?
A. Inherently legislative
B. Due process of law
C. International comity
D. Non-impairment clause
_____23.) Which restriction is described in the non-taxability of the property within the foreign country’s embassy
which is located within the territorial jurisdiction of the taxing State?
A. Inherently legislative
B. Due process of law
C. International comity
D. Non-impairment clause
_____24.) Which of the following remedies would counteract double taxation?
A. Reciprocity and/ or tax credit
B. Tax exemption and allowable deduction
C. Tax benefit arrangements
D. None of the above
_____25.) Fixing the tax rate to be imposed is best described as a(n)
A. Tax administration aspect.
B. Tax legislative function.
C. Aspect of taxation which could be delegated.
D. Function that could be exercised by the executive branch.

Test II. Essay. Write your answers in not less than 10-sentences. (10 points)
Summarize your learning in this course (Introduction to Economics with Taxation and Land Reform).

“Dear Students, You are the best because you brought out the best in me”
-Success is a Choice, not a Destiny-
_keepondreaming_
-Merry Christmas and a Prosperous New Year-

GOD Bless 