National Economy and Patrimony (Article XII) MCQs

Civil Service Exam reviewer on Article XII of the Constitution: classification of public lands, natural resources, Filipino ownership rules, public utilities, Filipino First, cooperatives and the central monetary authority.

1. 1

   Under Article XII, Section 3, lands of the public domain are classified into agricultural, forest or timber, mineral lands, and national parks. Which of these may be alienated?

   AMineral lands and national parksBAgricultural lands onlyCForest lands onlyDAll four classes

   Correct answer: B. Agricultural lands only

   Section 3 states that agricultural lands of the public domain may be further classified by law according to the uses to which they may be devoted, and that "alienable lands of the public domain shall be limited to agricultural lands." The other classes remain with the State.

   Read details

   mediumShow answer
2. 2

   Under Article XII, Section 1, which of the following is one of the goals of the national economy?

   AComplete dependence on imported goodsBOwnership of all businesses by the StateCMaximum profit for government corporationsDA more equitable distribution of opportunities, income and wealth

   Correct answer: D. A more equitable distribution of opportunities, income and wealth

   Section 1 sets three goals: a more equitable distribution of opportunities, income and wealth; a sustained increase in the amount of goods and services produced; and an expanding productivity as the key to raising the quality of life for all, especially the underprivileged.

   Read details

   mediumShow answer
3. 3

   Agreements for the exploration, development and utilisation of natural resources under Article XII, Section 2 may last for a period of:

   ANot more than 25 years, renewable for not more than 25 yearsBNot more than 50 years, not renewableCAny period fixed by the PresidentDNot more than 10 years, renewable twice

   Correct answer: A. Not more than 25 years, renewable for not more than 25 years

   Section 2 provides that such agreements shall be for a period not exceeding twenty-five years, renewable for not more than twenty-five years, and under terms and conditions provided by law.

   Read details

   mediumShow answer
4. 4

   Under Article XII, Section 2, the President may enter into agreements with foreign-owned corporations involving technical or financial assistance for large-scale exploration of minerals, petroleum and other mineral oils. The President must notify Congress of every such contract within:

   A60 days from its executionB30 days from its executionC90 days from its executionDOne year from its execution

   Correct answer: B. 30 days from its execution

   The fourth paragraph of Section 2 requires the President to notify the Congress of every contract entered into under that provision within thirty days from its execution. These are often called financial or technical assistance agreements.

   Read details

   hardShow answer
5. 5

   Article XII, Section 2 reserves the use and enjoyment of the nation's marine wealth in its archipelagic waters, territorial sea and exclusive economic zone exclusively to:

   ACorporations at least 60 percent Filipino-owned and foreign partnersBMembers of the ASEANCThe Department of AgricultureDFilipino citizens

   Correct answer: D. Filipino citizens

   Section 2 directs the State to protect the nation's marine wealth and reserve its use and enjoyment exclusively to Filipino citizens. Congress may also allow small-scale use of natural resources by Filipino citizens, with priority to subsistence fishermen.

   Read details

   mediumShow answer
6. 6

   Under Article XII, Section 3, private corporations or associations may hold alienable lands of the public domain only by:

   APurchase, up to 12 hectaresBHomestead, up to 24 hectaresCLease, for not more than 25 years renewable for 25 years, and not exceeding 1,000 hectaresDDonation from the State, with no area limit

   Correct answer: C. Lease, for not more than 25 years renewable for 25 years, and not exceeding 1,000 hectares

   Section 3 bars private corporations from holding alienable public lands except by lease, for a period not exceeding twenty-five years renewable for not more than twenty-five years, and not to exceed one thousand hectares in area.

   Read details

   hardShow answer
7. 7

   Under Article XII, Section 3, a Filipino citizen may acquire alienable lands of the public domain by purchase, homestead or grant up to how many hectares?

   A12 hectaresB24 hectaresC50 hectaresD500 hectares

   Correct answer: A. 12 hectares

   Citizens may lease not more than five hundred hectares, or acquire not more than twelve hectares by purchase, homestead or grant. The limits keep public land widely distributed.

   Read details

   hardShow answer
8. 8

   Under Article XII, Section 7, save in cases of hereditary succession, private lands may be transferred or conveyed only to:

   AResidents of the province where the land is locatedBAny person who pays the full priceCIndividuals, corporations or associations qualified to acquire or hold lands of the public domainDForeign investors with a business permit

   Correct answer: C. Individuals, corporations or associations qualified to acquire or hold lands of the public domain

   Section 7 limits transfers of private lands, except by inheritance, to those qualified to hold public lands, which in practice means Filipino citizens and corporations at least 60 percent Filipino-owned.

   Read details

   mediumShow answer
9. 9

   Article XII, Section 8 provides an exception to the land ownership rules for:

   AA natural-born citizen of the Philippines who has lost his or her Philippine citizenshipBAny foreigner married to a FilipinoCForeign corporations listed on the stock exchangeDForeign diplomats

   Correct answer: A. A natural-born citizen of the Philippines who has lost his or her Philippine citizenship

   Section 8 allows a natural-born citizen who has lost Philippine citizenship to be a transferee of private lands, subject to limitations provided by law. This recognises the ties of former Filipinos to their homeland.

   Read details

   mediumShow answer
10. 10

    Under Article XII, Section 11, a franchise for the operation of a public utility may be granted only to Filipino citizens or 60 percent Filipino-owned corporations, and for a period not longer than:

    A99 yearsB50 yearsC25 yearsD30 years

    Correct answer: B. 50 years

    Section 11 states that no franchise, certificate or other authorisation for a public utility shall be for a longer period than fifty years, and that no such franchise shall be exclusive in character.

    Read details

    mediumShow answer
12. 11

    Under Article XII, Section 11, the executive and managing officers of a corporation operating a public utility must be:

    ACitizens of the PhilippinesBApproved by the SenateCResidents of Metro ManilaDElected by the employees

    Correct answer: A. Citizens of the Philippines

    Section 11 provides that all the executive and managing officers of such a corporation must be citizens of the Philippines, and that foreign investors may participate in the governing body only in proportion to their share in the capital.

    Read details

    mediumShow answer
13. 12

    Republic Act No. 11659 of 2022 amended the Public Service Act and limited the term "public utility" to a short list of services. Which of the following is NO LONGER treated as a public utility under that law?

    ATelecommunicationsBDistribution of electricityCSeaportsDWater pipeline distribution systems

    Correct answer: A. Telecommunications

    RA 11659 limits "public utility" to the distribution and transmission of electricity, petroleum pipeline transmission systems, water and wastewater pipeline systems, seaports and public utility vehicles. Services such as telecommunications are now public services open to greater foreign ownership.

    Read details

    hardShow answer
14. 13

    Under Article XII, Section 17, in times of national emergency, when the public interest so requires, the State may:

    ADissolve CongressBTemporarily take over or direct the operation of any privately owned public utility or business affected with public interestCPermanently confiscate all private businesses without compensationDSuspend the Constitution

    Correct answer: B. Temporarily take over or direct the operation of any privately owned public utility or business affected with public interest

    Section 17 allows a temporary takeover or direction of operations, during the emergency and under reasonable terms prescribed by the State. It does not authorise permanent confiscation.

    Read details

    mediumShow answer
15. 14

    Article XII, Section 12 directs the State to promote the preferential use of:

    AImported goods to improve competitionBForeign consultants in all government projectsCFilipino labour, domestic materials and locally produced goodsDOnly goods made by government corporations

    Correct answer: C. Filipino labour, domestic materials and locally produced goods

    Section 12 promotes the preferential use of Filipino labour, domestic materials and locally produced goods, and asks the State to adopt measures that help make them competitive. This is often called the Filipino First policy.

    Read details

    easyShow answer
16. 15

    Under Article XII, Section 14, the practice of all professions in the Philippines shall be limited to:

    AMembers of professional associations based abroadBFilipino citizens, save in cases prescribed by lawCGraduates of state universitiesDPersons at least 25 years old

    Correct answer: B. Filipino citizens, save in cases prescribed by law

    Section 14 limits the practice of professions to Filipino citizens, save in cases prescribed by law. Laws on reciprocity and special permits allow certain foreign professionals to practise under conditions.

    Read details

    mediumShow answer
17. 16

    Article XII, Section 15 directs Congress to create an agency to promote the viability and growth of:

    APolitical partiesBForeign chambers of commerceCLabour unionsDCooperatives

    Correct answer: D. Cooperatives

    Section 15 calls for an agency to promote the viability and growth of cooperatives as instruments for social justice and economic development. RA 6939 of 1990 created the Cooperative Development Authority.

    Read details

    mediumShow answer
18. 17

    Under Article XII, Section 16, government-owned or controlled corporations may be created or established by special charters:

    AOnly by executive order of the PresidentBOnly for foreign investment purposesCWhenever a government agency needs extra fundsDIn the interest of the common good and subject to the test of economic viability

    Correct answer: D. In the interest of the common good and subject to the test of economic viability

    Section 16 forbids Congress, except by general law, from providing for the formation or regulation of private corporations. GOCCs may be created by special charters in the interest of the common good and subject to the test of economic viability.

    Read details

    hardShow answer
19. 18

    Article XII, Section 19 provides that the State shall regulate or prohibit:

    AForeign travel by citizensBAll private businessesCMonopolies when the public interest so requiresDProfits above ten percent

    Correct answer: C. Monopolies when the public interest so requires

    Section 19 states that the State shall regulate or prohibit monopolies when the public interest so requires, and that no combinations in restraint of trade or unfair competition shall be allowed. The Philippine Competition Act (RA 10667) of 2015 implements this policy.

    Read details

    mediumShow answer
20. 19

    Under Article XII, Section 20, the independent central monetary authority shall have a governing board, a majority of whose members shall come from:

    AThe private sectorBCongressCThe CabinetDGovernment banks

    Correct answer: A. The private sector

    Section 20 requires the central monetary authority's governing board to be composed of natural-born Filipino citizens of known probity, integrity and patriotism, a majority of whom shall come from the private sector. That authority is the Bangko Sentral ng Pilipinas.

    Read details

    mediumShow answer
21. 20

    The Bangko Sentral ng Pilipinas was established by the New Central Bank Act of 1993, which is Republic Act No.:

    A7160B8791C6713D7653

    Correct answer: D. 7653

    RA 7653 created the BSP as the independent central monetary authority required by Article XII, Section 20. It was amended in 2019 by RA 11211, which strengthened the BSP's powers. RA 8791 is the General Banking Law of 2000.

    Read details

    hardShow answer