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 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Entrepreneurship Chapter 6 Government Policies And Support To Entrepreneurship Quiz 4 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is an example of the government protecting a citizen's property? A) A recycling truck picking up bottles. B) A firefighter putting out a fire in a house. C) A doctor giving medicine to a patient. D) A librarian lending a book to students. Show Answer Correct Answer: B) A firefighter putting out a fire in a house. 2. The government enacted a law requiring the installation of seat belts in new cars. What is the intended benefit of this type of government regulation? A) To promote economic growth. B) To reduce private sector profits. C) To increase tax revenue. D) To enhance consumer safety. Show Answer Correct Answer: D) To enhance consumer safety. 3. The Federal Open Market Committee sells bonds. What type of policy is this? A) Contractionary Fiscal. B) Expansionary Monetary. C) Contractionary Monetary. D) Expansionary Fiscal. Show Answer Correct Answer: C) Contractionary Monetary. 4. What does the Ninth Amendment to the U.S. Constitution protect? A) Right to bear arms. B) Right to a fair trial. C) Unenumerated rights. D) Freedom of speech. Show Answer Correct Answer: C) Unenumerated rights. 5. What competition did patents lead to? A) Houses & Apartments. B) Brand & Entrepreneurship. C) Cars & Trucks. D) Cats & Dogs. Show Answer Correct Answer: A) Houses & Apartments. 6. An organization of government departments, agencies, and offices. A) Congress. B) Cabinet. C) Ambassadors. D) Bureaucracy. Show Answer Correct Answer: D) Bureaucracy. 7. How does presidential communication influence the passing of legislation? A) It grants the president the power to veto legislation. B) It directly determines the outcome of legislative votes. C) It allows the president to unilaterally implement policies without congressional approval. D) It can generate public support for the president's agenda, increasing the likelihood of legislative success. Show Answer Correct Answer: D) It can generate public support for the president's agenda, increasing the likelihood of legislative success. 8. What is involved in the construction of a Retail Price Index? A a base year B incomes C price elasticity of products D quantity supplied A) B. B) C. C) D. D) A. Show Answer Correct Answer: A) B. 9. What are the general principles upheld by the Texas Constitution? A) Limited government, separation of powers, popular sovereignty, and individual rights. B) Unlimited government, concentration of powers, popular control, and collective rights. C) Limited government, concentration of powers, popular sovereignty, and individual rights. D) Unlimited government, separation of powers, popular control, and collective rights. Show Answer Correct Answer: A) Limited government, separation of powers, popular sovereignty, and individual rights. 10. Which of the following is NOT a characteristic of a purely capitalist system? A) Ownership of private property is encouraged. B) Private citizens control production and own businesses. C) The government makes all economic decisions. D) Market forces set prices rather than the government. Show Answer Correct Answer: C) The government makes all economic decisions. 11. Which core principle is valued in Texas' political culture, promoting entrepreneurship and free markets? A) Economic liberty. B) Populism. C) Limited government intervention. D) Republican form of government. Show Answer Correct Answer: A) Economic liberty. 12. Which of the following schemes provides financial support to women entrepreneurs for starting small businesses? A) Atal Innovation Mission. B) Mahila E-Haat. C) Pradhan Mantri Fasal Bima Yojana. D) Digital India. Show Answer Correct Answer: B) Mahila E-Haat. 13. The regulation of businesses by the government is important to: A) Discourage innovation and competition. B) Ensure ethical practices and consumer protection. C) Increase the cost of living. D) Reduce the variety of products in the market. Show Answer Correct Answer: B) Ensure ethical practices and consumer protection. 14. After a recession it is often common to see an increase in the exchange rate. The effect of such event are ..... A) Increase in consumption. B) Increase in investment. C) Increase in government spending. D) Increase in the net exports. E) None of the above. Show Answer Correct Answer: D) Increase in the net exports. 15. People who believed slavery was wrong and tried to stop it. A) Habeas Corpus. B) Abolitionists. C) Secede. D) State's rights. Show Answer Correct Answer: B) Abolitionists. 16. Consumer protection laws are designed to: A) Protect the interests of the government. B) Increase the profits of businesses. C) Safeguard consumers from unfair business practices. D) Limit the choices available to consumers. Show Answer Correct Answer: C) Safeguard consumers from unfair business practices. 17. A country is considering economic reforms to improve living standards. Use reasoning and evidence to analyze how capitalism and the free market could help achieve this goal. A) By encouraging innovation, competition, and consumer choice, which can raise living standards. B) By increasing government control over all businesses. C) By limiting private ownership. D) By reducing the number of available goods and services. Show Answer Correct Answer: A) By encouraging innovation, competition, and consumer choice, which can raise living standards. 18. In times of a recession with a decrease in economic activity and an increase of unemployment companies would react best if the government ..... A) Worries about inflation and tighten their monetary policy. B) Reduces their debt and expenditures. C) Estimulate the economy with higher taxes. D) Estimulates the economy with lower taxes. E) Reduces the exchange rate. Show Answer Correct Answer: D) Estimulates the economy with lower taxes. 19. A tax on the earnings from an investment when you sell it. A) Income Tax. B) Estate Tax. C) Corporate Profit Tax. D) Capital Gains Tax. Show Answer Correct Answer: D) Capital Gains Tax. 20. Which of the following statements is true regarding the "Mudra Yojana" scheme for women entrepreneurs? A) It only supports men in business. B) It provides financial assistance up to ₹ 10 lakh. C) It promotes only service-oriented businesses. D) Women can avail loans under all three categories:Shishu, Kishore, and Tarun. Show Answer Correct Answer: D) Women can avail loans under all three categories:Shishu, Kishore, and Tarun. 21. Which branch of the government is responsible for the development and implementation of U.S. trade policy? A) Legislative Branch. B) Judicial Branch. C) Executive Branch. D) State Branch. Show Answer Correct Answer: C) Executive Branch. 22. Which of the following is an example of a regulatory policy? A) Distribution of tax revenue. B) Industrial safety and quality regulation. C) Trade relations. D) Banking regulation. Show Answer Correct Answer: B) Industrial safety and quality regulation. 23. Which policy would result in economic expansion? A) Decrease Government Spending. B) Increase Taxes. C) Lower Interest Rates. D) Raise Interest Rates. Show Answer Correct Answer: C) Lower Interest Rates. 24. Act made it a federal law that all runaway slaves MUST be returned to their owners in the south. A) Kansas-Nebraska Act. B) Dred Scott Decision. C) Compromise of 1850. D) Fugitive Slave Act. Show Answer Correct Answer: D) Fugitive Slave Act. 25. In what years did the protection policy take place? A) 1950-1965. B) 1869 to 1937. C) 1965 to 1972. D) 1972-2005. Show Answer Correct Answer: B) 1869 to 1937. 26. Which of the following fiscal policy tools would decrease national debt? A) Decreased Taxes. B) Increase Spending. C) Increase Taxes. D) Increase Money Supply. Show Answer Correct Answer: C) Increase Taxes. 27. California was admitted into the Union, Utah and New Mexico were able to choose (free or slave state), and settled border disputes from war with Mexico. A) Missouri Compromise. B) Kansas-Nebraska Act. C) Compromise of 1850. D) Dred Scott Decision. Show Answer Correct Answer: C) Compromise of 1850. 28. If the government spends more money than it collects in revenues, which of the following will occur. A) Discount Rate. B) A budget surplus (extra revenue). C) A budget deficit (increase in debt). D) A balanced budget. Show Answer Correct Answer: C) A budget deficit (increase in debt). 29. If the government is concerned about unemployment, which measure would they use? A) Increase discount rate. B) Increase money supply. C) Increase taxes. D) Increase Spending. Show Answer Correct Answer: D) Increase Spending. 30. Which is a is the rate at which commercial banks borrow funds from the Central Bank of the country? A) Discount rate. B) Interest on excess reserves. C) All the above. D) None of the above. Show Answer Correct Answer: A) Discount rate. 31. How do governments typically regulate businesses to ensure fair practices? A) By providing unlimited grants to businesses. B) By enforcing laws and standards that protect consumers. C) By participating directly in business operations. D) By eliminating all forms of taxes. Show Answer Correct Answer: B) By enforcing laws and standards that protect consumers. 32. Required Reserve Ratio A) The interest rate that banks pay to borrow money from the Fed. B) Difference between spending and revenue each year. C) The amount of money that a bank must keep on hand, and cannot loan out. D) Money that a lender charges in order to borrow money. Show Answer Correct Answer: C) The amount of money that a bank must keep on hand, and cannot loan out. 33. Which violent event from 1859 made people question if violence was necessary to end slavery? A) The war with border ruffians. B) Raid on Harpers Ferry. C) Firing on Fort Sumter. D) Bleeding Kansas. Show Answer Correct Answer: B) Raid on Harpers Ferry. 34. The branch of government that writes up and votes on laws. A) Judicial Branch. B) Legislative Branch. C) Executive Branch. D) Legislature Branch. Show Answer Correct Answer: B) Legislative Branch. 35. The branch of government that makes sure that laws are followed correctly. A) Legislative Branch. B) Judicial Branch. C) Executive Branch. D) Legislature Branch. Show Answer Correct Answer: B) Judicial Branch. 36. What does the "Digital Locker" service under Digital India provide? A) Physical storage for documents. B) A secure online platform to store and share documents. C) A cloud service for businesses only. D) None of the above. Show Answer Correct Answer: B) A secure online platform to store and share documents. 37. Public infrastructure development is crucial for: A) Decreasing the country's GDP. B) Enhancing national security and public welfare. C) Reducing employment opportunities. D) Limiting access to essential services. Show Answer Correct Answer: B) Enhancing national security and public welfare. 38. All of the following are economic goals of governments, EXCEPT ..... A) Inflation. B) Full employment. C) Economic Growth. D) Price Stability. Show Answer Correct Answer: A) Inflation. 39. Which ministry is primarily responsible for implementing the Digital India initiative? A) Ministry of Finance. B) Ministry of Electronics and Information Technology. C) Ministry of Education. D) Ministry of Commerce. Show Answer Correct Answer: B) Ministry of Electronics and Information Technology. 40. Who is in charge of our community safety? A) The doctor's office. B) The local government. C) The park. D) The grocery store. Show Answer Correct Answer: B) The local government. 41. What are the two broad reasons for government intervention in the economy mentioned in the passage? A) To enforce strict regulations and limit individual freedom. B) To promote efficiency and equality. C) To reduce government authority and increase individual power. D) To control market outcomes and restrict competition. Show Answer Correct Answer: B) To promote efficiency and equality. 42. What happened to Aboriginal people on reserves and missions? A) They were taught to reject their European ways of life. B) They were injected with smallpox. C) They were taught to reject their Aboriginality and had to convert to Christianity. D) They were taught to speak English and how to fight. Show Answer Correct Answer: C) They were taught to reject their Aboriginality and had to convert to Christianity. 43. The four government objectives are low inflation, low unemployment, balance of payments and A) Safe defence spending. B) Economic growth. C) Low tax revenue. D) High interest rates. Show Answer Correct Answer: B) Economic growth. 44. A series of events, as in time A) Period. B) Bond. C) Scheme. D) Major. Show Answer Correct Answer: A) Period. 45. How does government enforcement of property rights impact economic activities? A) It provides assurance for individuals to own and control scarce resources. B) It limits competition among businesses. C) It encourages businesses to engage in monopolistic practices. D) It discourages individuals from producing goods and services. Show Answer Correct Answer: A) It provides assurance for individuals to own and control scarce resources. 46. Which one of the following is NOT a supply side policy? A) The government increasing competition in all industries. B) The government reducing import controls. C) The government investing in training and education. D) The government privatising national industries. Show Answer Correct Answer: B) The government reducing import controls. 47. The relevance of multipliers in each economy is that ..... A) Governments can predict the real impact of their policies in consumption. B) Governments can predict the real amount of unemployment. C) Governments can predict the lag of their actions. D) Governments can predict the impact of their actions in consumption and inflation. E) None of the above. Show Answer Correct Answer: D) Governments can predict the impact of their actions in consumption and inflation. 48. Taxes on goods that are imported to the US from another country. A) Estate Tax. B) Income Tax. C) Tariff. D) Payroll Tax. Show Answer Correct Answer: C) Tariff. 49. Agreements with other countries that do not need Senate approval. A) Legislative Agreements. B) Legislature Agreements. C) Judicial Agreements. D) Executive Agreements. Show Answer Correct Answer: D) Executive Agreements. 50. According to Article 1, Section 10 of the U.S. Constitution, which of the following is a limitation on the powers of states? A) Entering treaties. B) Establishing a national healthcare system. C) Amending the Constitution. D) Creating a national currency. Show Answer Correct Answer: A) Entering treaties. 51. Purchasing Power A) A person's ability to buy products with a certain amount of money. B) Measuring device used to determine changes in price levels. C) Difference between spending and revenue each year. D) The government's attempt to stabilize the economy through taxing and government spending. Show Answer Correct Answer: A) A person's ability to buy products with a certain amount of money. 52. In which year was the Startup India initiative launched? A) 2015. B) 2017. C) 2018. D) 2016. Show Answer Correct Answer: D) 2016. 53. Why do governments regulate businesses? A) To ensure they make maximum profits. B) To prevent monopolies and protect consumers. C) To discourage entrepreneurship. D) To increase government ownership of businesses. Show Answer Correct Answer: B) To prevent monopolies and protect consumers. 54. When considering the business cycle, one problem of Classical Economics was that A) It couldn't make the peaks last. B) It involved the cutting of taxes to increase overall revenue. C) It involved the use of government spending to influence the economy. D) It didn't address how long a trough would last or how deep the trough would be. Show Answer Correct Answer: D) It didn't address how long a trough would last or how deep the trough would be. 55. Sales tax is an example of a regressive tax. How can a state make their sales tax less regressive? A) By placing the tax on only services. B) By placing the tax on necessities. C) By placing the tax on luxury goods. D) By placing the tax on all goods. Show Answer Correct Answer: C) By placing the tax on luxury goods. 56. What are the two M's patents bring to the country? A) Memory & Monopoly. B) More & Mechanism. C) Money & Market. D) None of the above. Show Answer Correct Answer: C) Money & Market. 57. What is the primary goal of the Digital India initiative? A) To increase physical infrastructure. B) To enhance digital infrastructure and literacy. C) To promote agriculture. D) To focus on foreign trade. Show Answer Correct Answer: B) To enhance digital infrastructure and literacy. 58. What is the role of government in public infrastructure development? A) To discourage investment in infrastructure. B) To solely rely on private companies for development. C) To plan, finance, and oversee the construction of public infrastructure. D) To ignore infrastructure needs. Show Answer Correct Answer: C) To plan, finance, and oversee the construction of public infrastructure. 59. What did the Dred Scott decision declare? A) It declare war between free and slave states. B) African Americans can't be citizens and can't sue in federal court. C) It banned the Fugitive Slave Act. D) It gave states the right to disobey federal laws (nullification). Show Answer Correct Answer: B) African Americans can't be citizens and can't sue in federal court. 60. Frictional Unemployment A) Based on changing economic conditions, like a recession. B) Unemployment that results from natural transitions in life. C) From industries that slow or shut down for a season. D) When the work available doesn't match the skill of the available workers. Show Answer Correct Answer: B) Unemployment that results from natural transitions in life. ← 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 2Class 12 Entrepreneurship Chapter 6 Government Policies And Support To Entrepreneurship Quiz 3Class 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