CONTEMPORARY ECONOMIC ISSUES

Question 1

what is investing (economic)

Answer 1

It is purchase of goods
that are not consumed
today but used in the
future to create wealth.

Question 2

what is investing (finance)

Answer 2

Is a monetary asset
purchased with the idea
that the asset will provide
income in the future or
appreciate and be sold at
a higher price.

Question 3

Net Investment = Gross Investment - ?

Answer 3

Net Investment = Gross Investment - Depreciation

Question 4

It provides the basis
for economic growth?

Answer 4

Net investment

Question 5

What are the main determinants of investment?

Answer 5

The Expected Return on the Investment

Business Confidence

Changes in National Income

Interest Rate - Reason why investment is inversely related to interest rate.

a. If interest rate rise, the opportunity cost of investment rises.

b. If interest rate rise, firms may anticipate that consumers will reduce their
spending, and the benefit of investing will be lost.

5. General Expectations
6. Corporation Tax
7. Level of Savings

Question 6

What is the accelerator effect

Answer 6

happens when an increase in national income
(GDP) results in a proportionately larger rise in capital investment
spending.

Question 7

A 12% tax must be collected for almost all kinds of product sales, services, and leases

Answer 7

Value Added Tax

Question 8

What is Salary and Wage Taxes?

Answer 8

As a Business owner responsible to the welfare of your employee, you must withhold
and remit to the proper government agencies employee income withholding taxes, SSS
Premiums, Pag-ibig and Medicare.

Question 9

What kind of tax is used in Cockpits, Movie houses, Clubs, Boxing Tournaments, Basketball games, Horse racing,
Carnivals and other amusement businesses.

Answer 9

Amusement Tax

Question 10

What is excise tax?

Answer 10

A business that involves in the manufacture of alcohol, tobacco, and petroleum products,
importing of automobile or jewelry and mining.

Question 11

Tax used for importation of industrial Machinery and
Equipment.

Answer 11

Import tax

Question 12

what is Individual income tax

Answer 12

Your income from a sole proprietorship business

Question 13

Corporate income tax

Answer 13

A business that is structure as a Corporation

Question 14

Real estate tax

Answer 14

Business that owns real estate or land

Question 15

When you passed away, your heirs pay taxes on money and property that
you have leave to them.

Answer 15

Estate or Inheritance Taxes

Question 16

The percentage of the capital that the lender charges the borrower for using their
property or money.

Answer 16

interest rate

Question 17

An agreement in which a payment is given for the use of
other people’s good, service, or property for an agreed-upon
period of time.

Answer 17

rentals

Question 18

As the Philippine economy develops and cities expand, there is a greater need
for housing in metropolitan areas.

Answer 18

economic growth and urbanization

Question 19

As the population grows, so does the competition for available homes, allowing
landlords to boost rates without losing potential renters.

Answer 19

population growth

Question 20

The housing supply has struggled to keep up with the rising demand.

Answer 20

limited supply

Question 21

Real estate developers and investors may buy properties with the purpose of reselling them at a profit or renting them out at a premium.

Answer 21

real estate speculation

Question 22

Tax taken from an individual’s income throughout the year.
Philippines’ 0%–35%

Answer 22

Personal income tax

Question 23

Tax collected at every stage of production.
Philippines’ : 12%

Answer 23

value added tax

Question 24

Tax on a corporation’s profits.
Philippines’ : 25%

Answer 24

corporate income tax