This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Entrepreneurship > Class 12 Entrepreneurship Chapter 6 Government Policies And Support To Entrepreneurship – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Entrepreneurship Chapter 6 Government Policies And Support To Entrepreneurship Quiz 1 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Why did the government take mixed race Aboriginal children from their families? A) Government thought these children could be absorbed into the wider white population. B) Government thought their parents could not look after them. C) Government thought these children could be absorbed into the wider black population. D) Government thought these children could be better used as servants. Show Answer Correct Answer: A) Government thought these children could be absorbed into the wider white population. 2. In 2015, 70000 extra people lost their jobs but total employment rose by 75 000. What could explain this? A Some people may have emigrated. B Some people may have gone back to education. C Some people may have re-entered the labour force. D Some people may have retired early. A) C. B) B. C) D. D) A. Show Answer Correct Answer: A) C. 3. The Government has increased revenues by charging extra fees for consumption of gasoline A) Tax Policy. B) Spending Policy. C) All the above. D) None of the above. Show Answer Correct Answer: A) Tax Policy. 4. Which of the following is not a principle of taxation A) Divisible. B) Certainty. C) Equity. D) Flexibility. Show Answer Correct Answer: A) Divisible. 5. A country with a government-controlled economy wants to increase innovation. Use reasoning to analyze how a free market system could encourage innovation. A) By allowing competition and rewarding new ideas, which motivates people to create better products. B) By limiting private ownership and entrepreneurship. C) By increasing government control over all businesses. D) By reducing the number of available goods and services. Show Answer Correct Answer: A) By allowing competition and rewarding new ideas, which motivates people to create better products. 6. These are taxes on the purchases of goods or services. A) Sales Tax. B) Payroll Tax. C) Estate Tax. D) Income Tax. Show Answer Correct Answer: A) Sales Tax. 7. What is the purpose of the Texas Constitution? A) To outline the structure of government. B) To guarantee certain rights and liberties. C) To reflect the values and priorities of citizens. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. Which of the following is a major focus of the "Make in India" initiative? A) Increasing imports. B) Encouraging manufacturing and attracting foreign investment. C) Promoting only the service sector. D) Limiting industrial growth. Show Answer Correct Answer: B) Encouraging manufacturing and attracting foreign investment. 9. Government's role in wealth redistribution A) Increasing taxes on the wealthy. B) Establishing wealth redistribution between states. C) Promoting free market policies. D) Reducing government spending. Show Answer Correct Answer: B) Establishing wealth redistribution between states. 10. Instead of cleaning their own homes, a large number of households decide to clean each other's homes and charge for their services. They all declare their income to the tax authority. What will increase as a result of this?A Gross Domestic ProductB importsC investmentD unemployment A) A. B) C. C) B. D) D. Show Answer Correct Answer: A) A. 11. Fill in the blank. The Federal government uses fiscal policies to maintain economic stability, including making changes to taxes and government spending. The government can try to stimulate economic growth by ..... or ..... A) Decrease government spending, decrease taxes. B) Increase government spending, increase taxes. C) Decrease government spending, increase taxes. D) Increase government spending, decrease taxes. Show Answer Correct Answer: D) Increase government spending, decrease taxes. 12. In a free market system, what role does self-interest primarily play according to Adam Smith? A) It requires strict oversight by regulators. B) It disrupts trade and reduces innovation. C) It guides choices that increase overall prosperity. D) It guarantees equal outcomes for every citizen. Show Answer Correct Answer: C) It guides choices that increase overall prosperity. 13. Public health program example A) Healthy eating workshops. B) Water quality testing. C) Exercise promotion campaigns. D) Smoking danger education. Show Answer Correct Answer: D) Smoking danger education. 14. A legal order that a person appear or produce requested documents A) Scheme. B) Subpoena. C) Immunity. D) Contempt. Show Answer Correct Answer: B) Subpoena. 15. Why did Marx describe religion as the 'opium of the people'? A) It inspired revolutions against factory owners. B) It replaced private property with shared goods. C) It gave false hope that dulled class struggle. D) It funded public schools for urban workers. Show Answer Correct Answer: C) It gave false hope that dulled class struggle. 16. What do authoritarian governments prioritize above all else? A) Promoting free speech. B) Ensuring economic equality. C) Preserving their power. D) Free and fair elections. Show Answer Correct Answer: C) Preserving their power. 17. What is the purpose of fiscal policy? A) To regulate the supply of money in the economy. B) To achieve economic growth, full employment, and price stability. C) To enforce voluntary contracts. D) To protect people's right to own property. Show Answer Correct Answer: B) To achieve economic growth, full employment, and price stability. 18. If the federal government uses an expansionary fiscal policy, it will lead to ..... in the short run and ..... in the long run. A) Preventing inflation, a contraction. B) Increasing spending, inflation. C) Decreasing spending, inflation. D) Preventing inflation, an expansion. Show Answer Correct Answer: B) Increasing spending, inflation. 19. Example of the government's role in providing public goods A) The government increasing military spending. B) The government privatizing healthcare services. C) The government reducing taxes for businesses. D) The government investing in public schools. Show Answer Correct Answer: D) The government investing in public schools. 20. What do public policy decisions in Texas influence? A) Foreign policies. B) International relations. C) Daily lives of citizens. D) Private businesses. Show Answer Correct Answer: C) Daily lives of citizens. 21. Which program under Startup India aims to promote innovation in startups? A) Startup India Showcase. B) Startup India Accelerator Program. C) Startup India Seed Fund Scheme. D) Startup India Digital Platform. Show Answer Correct Answer: C) Startup India Seed Fund Scheme. 22. Who would a citizen contact about a problem with city roads? A) The mayor. B) The president. C) The county commissioner. D) The governor. Show Answer Correct Answer: A) The mayor. 23. Governments also should be aware about the time it takes for their actions to be in place, this is call the ..... A) Unemployment lag. B) Reaction lag. C) Budget lag. D) Implementation lag. E) Time lag. Show Answer Correct Answer: D) Implementation lag. 24. Which combination of fiscal and monetary policy would speed up the economy? A) Increase taxes; decrease reserve requirement. B) Increase spending; increase interest on reserves. C) Decrease taxes; decrease discount rate. D) Decrease spending; sell bonds via open market operations. Show Answer Correct Answer: C) Decrease taxes; decrease discount rate. 25. Power of the legislative branch to review the policies, programs, and activities of the executive branch on an ongoing basis A) Necessary and Proper Clause. B) Legislative Veto. C) Impoundment. D) Legislative Oversight. Show Answer Correct Answer: D) Legislative Oversight. 26. Powers the government requires to carry out its expressed constitutional powers A) Expressed Power. B) Necessary Power. C) Immediate Power. D) Implied Power. Show Answer Correct Answer: D) Implied Power. 27. Which term best describes the right of the people living in a newly organized territory to decide by vote of their territorial legislature whether or not slavery would be permitted there. A) Popular sovereignty. B) Abolition. C) Electoral college. D) Secession. Show Answer Correct Answer: A) Popular sovereignty. 28. The government has extended unemployment benefits for qualified workers for an additional six weeks A) Tax Policy. B) Spending Policy. C) All the above. D) None of the above. Show Answer Correct Answer: B) Spending Policy. 29. Net exports are affected by government decisions such as ..... A) Reduction in public spending. B) Reduction of reference rate. C) Increase in consumption taxes. D) All of the above. Show Answer Correct Answer: B) Reduction of reference rate. 30. What is the primary reason for the U.S. involvement in Korea and Vietnam? A) An imperialist longing to annex colonies. B) A fear of the international spread of Communism. C) The hope of expanding American frontiers westward. D) A aid desire to help these people improve their economies. Show Answer Correct Answer: B) A fear of the international spread of Communism. 31. What government agency is responsible for exploring space? A) NASA. B) IRS. C) DEA. D) NSA. Show Answer Correct Answer: A) NASA. 32. Why was the 36' 30' parallel line only a temporary fix? A) It didn't include land the U.S. received from Mexico. B) It was written to only apply for 30 years. C) It was unconstitutional in the eyes of the southerners. D) It didn't have enough support in Congress from both sides. Show Answer Correct Answer: A) It didn't include land the U.S. received from Mexico. 33. What are the two forms of federalism experienced by Texas? A) Layer cake federalism and marble cake federalism. B) Chocolate cake federalism and vanilla cake federalism. C) Strawberry cake federalism and lemon cake federalism. D) Butter cake federalism and carrot cake federalism. Show Answer Correct Answer: A) Layer cake federalism and marble cake federalism. 34. The government decides to begin a massive effort to rebuild the nation's highway A) Tax Policy. B) Spending Policy. C) All the above. D) None of the above. Show Answer Correct Answer: B) Spending Policy. 35. People who represent interest groups A) Cabinet. B) Constituents. C) Lobbyists. D) Senators. Show Answer Correct Answer: C) Lobbyists. 36. What is a common trait shared by all governments according to the text? A) All governments are democratic in nature. B) All governments claim to lead and protect their people. C) All governments aim to oppress their people. D) All governments prioritize economic growth over security. Show Answer Correct Answer: B) All governments claim to lead and protect their people. 37. Which of the following is NOT cited as a possible cause of market failure in the passage? A) Externality. B) Government intervention. C) Pollution. D) Market power. Show Answer Correct Answer: B) Government intervention. 38. A local community wants more control over its schools, but the national government wants to set uniform standards. Use reasoning to explain how a federal system could address both local and national concerns. A) By allowing local governments to set some policies while the national government sets others. B) By giving all control to the national government. C) By eliminating local governments. D) By allowing local governments to ignore national standards. Show Answer Correct Answer: A) By allowing local governments to set some policies while the national government sets others. 39. If no candidate in a presidential election gets a majority of the votes in the Electoral College A) The House votes from the three candidates with the most electoral votes. B) The people get to choose from all the candidates running in the election. C) The Senate votes from all candidates running in the election. D) The Supreme Court chooses the winner. Show Answer Correct Answer: A) The House votes from the three candidates with the most electoral votes. 40. Government intervention in the economy has as its main objective to ..... A) Reduce inflation. B) Increase inflation. C) Reduce unemployment. D) Increase unemployment. E) Reduce inflation and reduce unemployment. Show Answer Correct Answer: E) Reduce inflation and reduce unemployment. 41. If the Central Bank wants to increase the money supply, it will ..... the interest rate it pays to the commercial banks on the amount of excess reserves they hold with the Central Bank. A) Increase. B) Lower. C) All the above. D) None of the above. Show Answer Correct Answer: B) Lower. 42. An important group of policy advisers to the President. A) Congress. B) House of Representatives. C) Supreme Court. D) Cabinet. Show Answer Correct Answer: D) Cabinet. 43. Which of the following is an example of a power reserved to the states? A) National Defense. B) Foreign Policy. C) Interstate commerce. D) Education. Show Answer Correct Answer: D) Education. 44. Which of the following best describes the government's role in taxation policies? A) To eliminate all taxes. B) To ensure equitable distribution of wealth. C) To discourage investments. D) To fund private luxury projects. Show Answer Correct Answer: B) To ensure equitable distribution of wealth. 45. What ideology do left-wing governments support? A) Preserving the status quo and opposing change. B) Believing in minimal government intervention in the economy. C) Working toward achieving social equality. D) Prioritizing individual freedom over social equality. Show Answer Correct Answer: C) Working toward achieving social equality. 46. Role of government in regulating businesses A) To enforce laws that protect consumers, workers, and the environment. B) To maximize profits for businesses. C) To eliminate competition in the market. D) To reduce taxes for corporations. Show Answer Correct Answer: A) To enforce laws that protect consumers, workers, and the environment. 47. What are the characteristics of the 1876 Texas Constitution? A) Length, specificity, and emphasis on limiting government power. B) Flexibility, brevity, and emphasis on expanding government power. C) Length, flexibility, and emphasis on expanding government power. D) Flexibility, specificity, and emphasis on limiting government power. Show Answer Correct Answer: A) Length, specificity, and emphasis on limiting government power. 48. What type of funding does the "Fund of Funds for Startups" (FFS) provide? A) Direct loans to startups. B) Financial support to venture capital firms for investing in startups. C) Grants for public sector enterprises. D) Crowdfunding support. Show Answer Correct Answer: B) Financial support to venture capital firms for investing in startups. 49. Under the "Atal Innovation Mission, " which of the following is encouraged? A) Setting up of financial institutions. B) Establishing innovation hubs and incubators. C) Limiting research and development. D) Only government-funded projects. Show Answer Correct Answer: B) Establishing innovation hubs and incubators. 50. What is the primary purpose of the MSME Development Act, 2006? A) To promote only large enterprises. B) To establish a legal framework for the development and regulation of MSMEs. C) To restrict foreign investment. D) To standardize large-scale manufacturing. Show Answer Correct Answer: B) To establish a legal framework for the development and regulation of MSMEs. 51. Prominent or significant in size, amount, or degree A) Scheme. B) Revise. C) Bond. D) Major. Show Answer Correct Answer: D) Major. 52. The change in the reference rate of the Central bank usually has which of the following effects directly ..... A) Increases interest rates in banks. B) Reduces interest rate in banks. C) It can cause the exchange rate to increase or decrease inveresely to the change in the rate. D) Reducing unemployment. E) All of the above. Show Answer Correct Answer: C) It can cause the exchange rate to increase or decrease inveresely to the change in the rate. 53. A country with a unitary system is facing protests from local communities. Use reasoning to explain how adopting a federal system could help resolve these conflicts. A) By giving local governments more authority to address local issues while maintaining national unity. B) By centralizing all power in the national government. C) By eliminating local governments. D) By allowing local governments to ignore national laws. Show Answer Correct Answer: A) By giving local governments more authority to address local issues while maintaining national unity. 54. A law that convicts a person of a crime without a trial. A) Bill. B) Budget Bill. C) Bill of Attainder. D) Due Process. Show Answer Correct Answer: C) Bill of Attainder. 55. Which of the following is NOT one of the ways in which the media affect politics? A) By providing information on both parties. B) By contributing to election campaign funds. C) By focusing public attention on particular issues. D) By providing in-depth coverage of national issues. Show Answer Correct Answer: B) By contributing to election campaign funds. 56. Example of government involvement in healthcare regulation A) Regulating insurance companies and ensuring patient privacy. B) Providing free healthcare services to all citizens. C) Eliminating all private healthcare providers. D) Setting prices for medical procedures. Show Answer Correct Answer: A) Regulating insurance companies and ensuring patient privacy. 57. Why is constitutional revision in Texas infrequent? A) Due to the frequent changes in political priorities. B) Due to the stringent requirements for amendments. C) Due to the ease of making amendments. D) Due to the lack of interest in making changes. Show Answer Correct Answer: B) Due to the stringent requirements for amendments. 58. In Marx's view, who are the proletariat in industrial society? A) Religious leaders guiding community morals. B) Wealthy investors who own railroads. C) Small shop owners who employ apprentices. D) The wage-earning working class in factories. Show Answer Correct Answer: D) The wage-earning working class in factories. 59. Which of the following is an example of a social welfare program? A) Unemployment benefits. B) Corporate tax breaks. C) Stock market regulation. D) Business incubation programs. Show Answer Correct Answer: A) Unemployment benefits. 60. Who submits a budget to Congress for approval? A) The Supreme Court. B) The Senate. C) The President. D) The House of Representatives. Show Answer Correct Answer: C) The President. Next →Related QuizzesCommerce QuizzesClass 12 QuizzesClass 12 Entrepreneurship Chapter 6 Government Policies And Support To Entrepreneurship Quiz 2Class 12 Entrepreneurship Chapter 6 Government Policies And Support To Entrepreneurship Quiz 3Class 12 Entrepreneurship Chapter 6 Government Policies And Support To Entrepreneurship Quiz 4Class 12 Entrepreneurship Chapter 6 Government Policies And Support To Entrepreneurship Quiz 5Class 12 Entrepreneurship Chapter 6 Government Policies And Support To Entrepreneurship Quiz 6Class 12 Entrepreneurship Chapter 6 Government Policies And Support To Entrepreneurship Quiz 7Class 12 Entrepreneurship Chapter 1 Entrepreneurship And Enterprise QuizClass 12 Entrepreneurship Chapter 2 Entrepreneurial Planning Quiz 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books