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 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Entrepreneurship Chapter 6 Government Policies And Support To Entrepreneurship Quiz 2 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which involves steps like increasing government purchases, decreasingtaxes or a combination of both? A) Contractionary Fiscal Policy. B) Expansionary Fiscal Policy. C) All the above. D) None of the above. Show Answer Correct Answer: B) Expansionary Fiscal Policy. 2. What is taxation? A) Taxation is when governments finance their expenditure by charging a percentage from individual citizens income and business profits. B) When you text your best friend . C) When governments give a percentage of business profits to citizens. D) When businesses take a percentage of expenditure from governments. Show Answer Correct Answer: A) Taxation is when governments finance their expenditure by charging a percentage from individual citizens income and business profits. 3. A power given to Congress in the Constitution is the power to A) Prohibit racial discrimination. B) Support welfare programs. C) Declare war. D) Draft people into the armed services. Show Answer Correct Answer: C) Declare war. 4. What role do federal resources play in the state budget of Texas? A) They support various programs and services. B) They enforce federal laws. C) They regulate state elections. D) They oversee state courts. Show Answer Correct Answer: A) They support various programs and services. 5. If the government is concerned about unemployment, which tool would they use? A) Increase discount rate. B) Increase reserve requirement. C) Increase taxes. D) Increase spending. Show Answer Correct Answer: D) Increase spending. 6. Which occurs as a consequence of price increase of goods and services? A) Built-in inflation. B) Cost-push inflation. C) All the above. D) None of the above. Show Answer Correct Answer: A) Built-in inflation. 7. The elements of the economy are: A) Consumption with no purpose of profit. B) Investment. C) Government spending. D) Net exports. E) All of the above. Show Answer Correct Answer: E) All of the above. 8. When the government needs to sell more debt, it will cause ..... A) A) Increase in the number of bonds in the bond market. B) B) Decrease in the price of bonds. C) C) Increase in the exchange rate. D) A) and b). E) All of the above. Show Answer Correct Answer: D) A) and b). 9. All of the following are regressive taxes, Except ..... A) Income Tax. B) Capital Gains Tax. C) Estate Tax. D) Sales Tax. Show Answer Correct Answer: A) Income Tax. 10. Which amendment granted residents of Washington DC the right to vote in presidential elections? A) Twenty-Fourth Amendment. B) Seventeenth Amendment. C) Twenty-Sixth Amendment. D) Twenty-Third Amendment. Show Answer Correct Answer: D) Twenty-Third Amendment. 11. What reason does the government give to place an excise tax on alcohol and tobacco? A) To raise money for the federal government. B) To make it expensive to import the products. C) To make it harder for companies to sell these products. D) To discourage the use of these products. Show Answer Correct Answer: D) To discourage the use of these products. 12. Why were governments formed in early civilizations? A) When cities grew, they needed rules to keep people safe and things organized. B) Because people like to have other people tell them what to do. C) Governments were formed early because the strong took over the week and set up rules. D) Because the Illuminati demanded it. Show Answer Correct Answer: A) When cities grew, they needed rules to keep people safe and things organized. 13. Which one of the following is not part of the business cycle? A) Maturity. B) Growth. C) Recession. D) Slump. Show Answer Correct Answer: A) Maturity. 14. How does promoting world peace benefit national security? A) It increases the likelihood of conflict. B) It creates economic instability. C) It decreases the likelihood of conflict. D) It has no impact on conflict. Show Answer Correct Answer: C) It decreases the likelihood of conflict. 15. A bill that establishes a program and says how much can be spent on the program A) Appropriations bill. B) Light bill. C) Revenue bill. D) Authorization bill. Show Answer Correct Answer: D) Authorization bill. 16. To correct or improve A) Bond. B) Revise. C) Period. D) Scheme. Show Answer Correct Answer: B) Revise. 17. What is a key challenge faced by MSMEs in India? A) Excessive government support. B) Lack of skilled labor. C) Limited access to markets. D) Both B and C. Show Answer Correct Answer: D) Both B and C. 18. Which government policy expected Aboriginal and Torres Strait Islander people to live the same lives as non-Indigenous Australians? A) Assimilation. B) Protection. C) Self determination. D) Integration. Show Answer Correct Answer: A) Assimilation. 19. What is a example of government assists? A) Bus drivers & Lyft Driver. B) Housing & Food Stamps. C) Federal Justice. D) Police reports. Show Answer Correct Answer: B) Housing & Food Stamps. 20. The government regulates private businesses for all of the following reasons except A) To protect monopolies. B) To protect competition. C) To protect consumers. D) To stabilize the economy. Show Answer Correct Answer: A) To protect monopolies. 21. Economic growth can be defined as A an increase in a country's exports. B an increase in a country's population. C an increase in the productive capacity of an economy.D a reduction in inflation. A) A. B) D. C) B. D) C. Show Answer Correct Answer: D) C. 22. Which statement best explains why some reformers opposed pure laissez-faire during industrialization? A) They argued competition eliminated consumer choices. B) They thought private ownership slowed economic growth. C) They believed unregulated markets could harm laborers. D) They feared too much worker control over factories. Show Answer Correct Answer: C) They believed unregulated markets could harm laborers. 23. Define protectionism A) Protecting yourself as a business. B) Protecting your customers from competition. C) They protect jobs, infant industries and dumping from other countries through international trade. D) Protecting goods and services. Show Answer Correct Answer: C) They protect jobs, infant industries and dumping from other countries through international trade. 24. Prices are growing faster than wages can keep up. Which policy should government implement? A) Expansionary. B) Contractionary. C) All the above. D) None of the above. Show Answer Correct Answer: B) Contractionary. 25. Which fiscal policy measure would be used to improve an economy from a bad year A) Improve training and education. B) Decrease government spending. C) Increase money supply. D) Increase government spending. Show Answer Correct Answer: D) Increase government spending. 26. Which scheme provides mentorship and support for startups in India? A) Digital India. B) Skill India. C) Startup India. D) Make in India. Show Answer Correct Answer: C) Startup India. 27. Which Indian government scheme encourages women entrepreneurs to start their own businesses by providing financial assistance and guidance? A) Pradhan Mantri Mudra Yojana. B) Stand-Up India Scheme. C) Digital India. D) Atal Innovation Mission. Show Answer Correct Answer: B) Stand-Up India Scheme. 28. Which policy outcome aligns with Marx's call to abolish private property? A) Religious tithes funding relief for the poor. B) Worker bonuses while shareholders keep control. C) Higher taxes on owners but private firms remain. D) Goods and services shared equally across society. Show Answer Correct Answer: D) Goods and services shared equally across society. 29. What is a major way that the executive branch can act as a check on the legislative branch? A) Proposing constitutional amendments. B) Vetoing bills. C) Declaring legislation unconstitutional. D) Refusing to ratify treaties. Show Answer Correct Answer: B) Vetoing bills. 30. What is the definition of a policy? A) An official plan of action. B) A form of government. C) A platform used to discuss issues. D) A way for politicians to become president. Show Answer Correct Answer: A) An official plan of action. 31. What type of policy is the use of interest rates to control the economy? A) Demand side policy. B) Fiscal policy. C) Insurance policy. D) Monetary policy. Show Answer Correct Answer: D) Monetary policy. 32. This is the largest source of Federal Revenue. A) Income Tax. B) Sales Tax. C) Payroll Tax. D) Estate Tax. Show Answer Correct Answer: A) Income Tax. 33. The set of plans for guiding our nation's relationships with other countries. A) Foreign Policy. B) Immigration Policy. C) National Policy. D) Domestic Policy. Show Answer Correct Answer: A) Foreign Policy. 34. What does the "Stand-Up India" scheme promote? A) Entrepreneurship among only women. B) Entrepreneurship among Scheduled Castes (SC) and Scheduled Tribes (ST) and women. C) Only technology startups. D) Global entrepreneurship. Show Answer Correct Answer: B) Entrepreneurship among Scheduled Castes (SC) and Scheduled Tribes (ST) and women. 35. Which supply-side policy measure would be used to improve employment A) Increase government spending. B) Increased income taxes. C) Improved education and training. D) Decreased unemployment benefits. Show Answer Correct Answer: C) Improved education and training. 36. Which of the following is a key feature of the "Pradhan Mantri Employment Generation Programme" (PMEGP)? A) Focus on large corporations. B) Financial assistance for setting up new micro-enterprises. C) Mandatory government employment. D) Grants exclusively for urban areas. Show Answer Correct Answer: B) Financial assistance for setting up new micro-enterprises. 37. What is an important difference between interest groups and political parties? A) Interest groups have more members than political parties. B) Interest groups have platforms that address all issues of public concern. C) Interest groups are organized to elect their candidates to office. D) Interest groups attempt to influence government directly on a particular issue. Show Answer Correct Answer: D) Interest groups attempt to influence government directly on a particular issue. 38. Which of the following government schemes provides financial support to entrepreneurs and startups through funding in the early stages? A) Pradhan Mantri Jan Dhan Yojana. B) Stand-Up India Scheme. C) MUDRA Yojana. D) Atal Innovation Mission. Show Answer Correct Answer: C) MUDRA Yojana. 39. The yearly financial plan for the federal government A) Revenue bill. B) National budget. C) Government rollout plan. D) Interstate commerce. Show Answer Correct Answer: B) National budget. 40. The branch of government responsible for executing or enforcing the laws. A) Legislative Branch. B) Legislature Branch. C) Judicial Branch. D) Executive Branch. Show Answer Correct Answer: D) Executive Branch. 41. A student claims: "In capitalism, the government controls the means of production to ensure equal sharing." What is the best correction? A) Capitalism bans profits to prevent inequality. B) Capitalism uses private ownership and market competition. C) Capitalism replaces money with state-issued vouchers. D) Capitalism sets wages by national committees. Show Answer Correct Answer: B) Capitalism uses private ownership and market competition. 42. The government of a country is considering implementing policies to support the manufacturing sector. Which of the following policies is an example of direct government support for manufacturing? A) Decreasing corporate taxes for all businesses. B) Decreasing corporate taxes for all businesses. C) Providing subsidies to manufacturing companies to lower production costs. D) Offering training programs to improve workforce skills across all industries. Show Answer Correct Answer: C) Providing subsidies to manufacturing companies to lower production costs. 43. Government action to regulate the labor market A) It sets minimum wage standards and enforces workplace safety regulations. B) It provides tax breaks for large corporations. C) It eliminates all forms of labor unions. D) It allows employers to set wages without any restrictions. Show Answer Correct Answer: A) It sets minimum wage standards and enforces workplace safety regulations. 44. The government pays a subsidy for each worker employed by a firm in an area of high unemployment. When would this policy be most successful in reducing unemployment? A when the firm is capital-intensive B when the firm is labour-intensive, requiring mainly unskilled labour C when the firm provides professional services D when the firm requires mainly specialist, skilled labour A) B. B) D. C) C. D) A. Show Answer Correct Answer: A) B. 45. Which of the following is a benefit provided under the Startup India initiative? A) Tax exemption for 5 years. B) Mandatory government contracts. C) Fixed capital investment. D) No competition laws. Show Answer Correct Answer: A) Tax exemption for 5 years. 46. Trustworthiness is? A) Rich picked up a bottle on the ground. B) Lisa found money and gave it to the person who lost it. C) Eva said "thank you" when someone held the door open. D) Jack did his homework when he got home. Show Answer Correct Answer: B) Lisa found money and gave it to the person who lost it. 47. Why has the power of the federal government increased? A) To maintain state sovereignty. B) To reduce regulations. C) To address national challenges. D) To limit the power of individual states. Show Answer Correct Answer: C) To address national challenges. 48. Which is a constitutional requirement to run for Congress? A) At least 25 years old. B) U.S. Permanent Resident. C) U.S. citizen. D) At least 30 years old. Show Answer Correct Answer: C) U.S. citizen. 49. Patents on inventions such as technological innovations help the economy by A) Allowing the government to make money from new inventions. B) Placing tariffs on any imports that might compete with U.S. products. C) Protecting intellectual property and fostering entrepreneurship. D) Providing government money for the development of new products. Show Answer Correct Answer: C) Protecting intellectual property and fostering entrepreneurship. 50. What should the government do to the value of £ to increase exports and economic growth? A) Increase the value of the pound (appreciation). B) Decrease the value of the pound (depreciation). C) Revaluation of the pound. D) None of the above. Show Answer Correct Answer: B) Decrease the value of the pound (depreciation). 51. A group of citizens is worried about losing their freedoms under a new government. Use reasoning to explain how a constitutional republic can safeguard liberty compared to other forms of government. A) By establishing laws and elected representatives that protect individual rights. B) By concentrating all power in one leader. C) By eliminating elections. D) By ignoring the rule of law. Show Answer Correct Answer: A) By establishing laws and elected representatives that protect individual rights. 52. Which government body is responsible for formulating policies for MSMEs in India? A) Ministry of Corporate Affairs. B) Ministry of Finance. C) Ministry of Micro, Small, and Medium Enterprises. D) Ministry of Commerce. Show Answer Correct Answer: C) Ministry of Micro, Small, and Medium Enterprises. 53. If the Central Bank increases the reserve ratio of commercial banks, it leads to a ..... in the supply of money in the economy. A) Decrease. B) Increase. C) All the above. D) None of the above. Show Answer Correct Answer: A) Decrease. 54. Which scheme aims specifically to promote women entrepreneurship in India? A) Make in India. B) Mahila Udyam Nidhi Scheme. C) Startup India. D) Pradhan Mantri Mudra Yojana. Show Answer Correct Answer: B) Mahila Udyam Nidhi Scheme. 55. Why is it difficult for the federal government to make large cuts to spending? A) Most of the government costs are for wages for federal employees. B) The largest part of the government spending is fixed and can't be reduced. C) Most people people oppose cuts for many programs. D) A constitutional amendment has limited the size of any spending cuts that can be passed by congress during one fiscal year. Show Answer Correct Answer: C) Most people people oppose cuts for many programs. 56. What do emergency responders do? A) Help us with our chores. B) Help us win a race. C) Help us with our homework. D) Help us in an emergency. Show Answer Correct Answer: D) Help us in an emergency. 57. The Federal Reserve can decrease the supply of money and slow inflation by A) Decreasing the reserve requirement. B) Selling government bonds in the open market. C) Buying government bond in the open market. D) Decreasing the discount rate. Show Answer Correct Answer: B) Selling government bonds in the open market. 58. Fiscal policy affects consumption by ..... A) Changing the amount of disposable income available. B) Changing the rate of their loans. C) Changing inflation rates in the economy. D) Changing unemployment. E) None of the above. Show Answer Correct Answer: A) Changing the amount of disposable income available. 59. The area a member of the House represents A) House of Representatives. B) School District. C) Bill of Attainder. D) Congressional District. Show Answer Correct Answer: D) Congressional District. 60. Which term best describes the policy of giving people control of their own lives? A) Integration. B) Assimilation. C) Self-determination. D) Reconciliation. Show Answer Correct Answer: C) Self-determination. ← PreviousNext →Related QuizzesCommerce QuizzesClass 12 QuizzesClass 12 Entrepreneurship Chapter 6 Government Policies And Support To Entrepreneurship Quiz 1Class 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