Public Finance

Question 1

Asserts that those with equal ability to pay should

pay equal taxes.

Answer 1

Horizontal Equity

Question 2

Suggests that those with greater needs should
receive more from government (expenditure side)
and those with greater “ability to pay” should pay
more (taxation side)

Gauges the relationship between income and
effective rates. (Regressive or Progressive)

Answer 2

Vertical Equity

Question 3

Suggests that programs should avoid making
someone better off if they will result in making
someone else worse off (efficiency loss).

Some are better off but there are no losers.

Answer 3

Efficiency

Question 4

Holds that individuals are entitled to the product of

their labor and to a fair return on their savings.

Answer 4

Individual Equity

Question 5

Requires that policy and its implementation
should be simple for those complying and those
administering.

Answer 5

Simplicity

Question 6

Requires that taxes be collected to provide
revenues sooner or later to pay for the costs of
government.

Answer 6

Revenue Raising

Question 7

Refers to measures employed by
governments to stabilize the economy,
specifically by manipulating the levels and
allocations of taxes and government
expenditures.

Answer 7

Fiscal Policy

Question 8

structure of taxation + level and

composition of public expenditure

Answer 8

Fiscal Policy

Question 9

how the

government gets its funds

Answer 9

Government Revenue Policy

Question 10

how it

allocates its revenue among different uses

Answer 10

Government Expenditures Policy

Question 11

how it manages

the public debt

Answer 11

Debt Management Policy

Question 12

cover proceeds from sales of
fixed capital asset or scraps like sales of public
bonds, buildings and other structures.

Answer 12

Capital revenues

Question 13

re-payment of loans
and advances made by government corporations
and local governments.

Answer 13

Extraordinary income

Question 14

covers proceeds of re-payable
obligations generally with interest from domestic
and foreign creditors of government.

Answer 14

Public borrowing

Question 15

government issued

bonds.

Answer 15

Domestic borrowings

Question 16

voluntary contributions and aids
given by the government for its operation on
specific purpose.

Answer 16

Grants

Question 17

refer to the day to-day cost of running the government

Answer 17

Re-current expenditures

Question 18

pertain to cost of capital projects

Answer 18

Development expenditures

Question 19

Refers to the measures employed by
government that set what taxes to be levied, in
what amounts and on whom

Answer 19

Tax Policy

Question 20

government could increase expenditures
or reduce taxes to help an underemployed or
depressed economy, even if higher deficits result
(Pump Priming or Demand Stimulus)

Answer 20

Keynesians

Question 21

economic growth can be most
effectively created by lowering taxes and decreasing
regulations

Answer 21

Supply-side Theorists

Question 22

special attention to
lowering the tax rates on capital income but less
concerned with rates on labor

Answer 22

Capital Formation Reformers

Question 23

Commissioner of Internal Revenue

Answer 23

Caesar R. Dulay

Question 24

Deputy Commissioner for Information Systems Group

Answer 24

Lanee C. David

Question 25

Deputy Commissioner for Legal Group

Answer 25

Marissa O. Cabreros

Question 26

Deputy Commissioner for Operations Group

Answer 26

Arnel SD. Guballa

Question 27

Deputy Commissioner for Resource Management Group

Answer 27

Celia C. King

Question 28

Date of Inauguration of the BIR National Office (NO) Building

Answer 28

June 3, 1977