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 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Entrepreneurship Chapter 6 Government Policies And Support To Entrepreneurship Quiz 6 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Split the Nebraska Territory into the states of Kansas and Nebraska, where they also got to choose whether to be free or slave states ..... causing conflict with other states. A) Missouri Compromise. B) Compromise of 1850. C) Kansas-Nebraska Act. D) Fugitive Slave Act. Show Answer Correct Answer: C) Kansas-Nebraska Act. 2. What type of government was implemented by Mussolini and Hitler? A) A Democracy. B) Communism. C) A monarchy. D) Totalitarianism. Show Answer Correct Answer: D) Totalitarianism. 3. You are the founder of a new venture in a rural area and need financial support for your business. Which scheme is designed to provide financial assistance to such startups? A) Make in India. B) MUDRA Yojana. C) Startup India. D) Atal Innovation Mission. Show Answer Correct Answer: B) MUDRA Yojana. 4. If you were an environmentalist, what might your motto be when in the wilderness? A) A nice hotel might and theme park might look nice in this forest. B) We should dig this area up and see if there's any gold here. C) These trees are blocking my view of the mountains, we should cut them down. D) Leave nothing in nature but your footprints. Show Answer Correct Answer: D) Leave nothing in nature but your footprints. 5. Which monetary policy tool would speed up the economy? A) Increasing government spending. B) Decreasing income taxes. C) Increasing reserve requirement. D) Decreasing interest paid on reserves. Show Answer Correct Answer: D) Decreasing interest paid on reserves. 6. What does MSME stand for? A) Medium, Small, and Micro Enterprises. B) Micro, Small, and Medium Enterprises. C) Small, Medium, and Micro Enterprises. D) Micro, Medium, and Small Enterprises. Show Answer Correct Answer: B) Micro, Small, and Medium Enterprises. 7. Define Trade Policy? A) Doing business with another company. B) Refund and Exchange for customers. C) Trade policy refers to the regulations and agreements that control imports and exports to foreign countries. D) None of the above. Show Answer Correct Answer: C) Trade policy refers to the regulations and agreements that control imports and exports to foreign countries. 8. All of the following would slow the economy down, EXCEPT ..... A) Decrease Taxes. B) Reducing Government Spending. C) Drive up inflation. D) Sell Government Bonds through the Open Market Operations. Show Answer Correct Answer: D) Sell Government Bonds through the Open Market Operations. 9. What did Patent bring to the country? A) Federal Courts. B) Justice. C) Material things. D) Profit. Show Answer Correct Answer: D) Profit. 10. What is the subject of the Federal Open Market Committee decisions? A) Scheduling of banking days and hours of member banks. B) Chartering of new banks and other lending institutions. C) Appointment of members of the Federal Reserve Board of Governors. D) The buying and selling of bonds to affect the money supply. Show Answer Correct Answer: D) The buying and selling of bonds to affect the money supply. 11. How are monetary policy and fiscal policy similar? A) They are both done by the President. B) They are both done by the Fed. C) They are both used to keep the economy stable. D) They both use four tools. Show Answer Correct Answer: C) They are both used to keep the economy stable. 12. What is the primary goal of the "Startup India" initiative? A) To promote traditional businesses. B) To create a favorable environment for startups. C) To restrict foreign investments. D) To increase tax rates for small businesses. Show Answer Correct Answer: B) To create a favorable environment for startups. 13. What do lobbyists try to do? A) Help Congress in writing legislation for the common good. B) Ensure the federal budget balances. C) Help the President to choose Supreme Court justices and Cabinet members. D) Influence the decisions made by government officials. Show Answer Correct Answer: D) Influence the decisions made by government officials. 14. What is the primary purpose of taxation policies implemented by the government? A) To fund private sector initiatives. B) To regulate the stock market. C) To finance public services and infrastructure. D) To support international trade. Show Answer Correct Answer: C) To finance public services and infrastructure. 15. What does a market outcome refer to? A) The government's intervention in a market. B) The pricing strategy of sellers in a market. C) The regulation of competition in a market. D) The result of interactions between buyers and sellers in a market. Show Answer Correct Answer: D) The result of interactions between buyers and sellers in a market. 16. What is one reason the passage suggests for government intervention in the economy? A) To increase market competition. B) To address disparities in economic well-being. C) To promote inequality among citizens. D) To reduce the efficiency of market outcomes. Show Answer Correct Answer: B) To address disparities in economic well-being. 17. What is the aim of the "BharatNet" project under Digital India? A) To provide free laptops to students. B) To promote digital payments. C) To connect rural areas with high-speed internet. D) To build more roads. Show Answer Correct Answer: C) To connect rural areas with high-speed internet. 18. The Federal Reserve Bank is responsible for ..... A) Regulating Health Care. B) Regulating Monetary Policy. C) Managing the National Debt. D) Collecting Taxes. Show Answer Correct Answer: B) Regulating Monetary Policy. 19. Government's role in private school regulation A) Regulating all private schools to ensure they meet government standards. B) Providing funding for private schools. C) Allowing private schools to operate without any oversight. D) Promoting private schools over public schools. Show Answer Correct Answer: A) Regulating all private schools to ensure they meet government standards. 20. Which government policy provides financial assistance to unemployed individuals? A) Tariff laws. B) Unemployment insurance. C) Interest rates. D) Right to work laws. Show Answer Correct Answer: B) Unemployment insurance. 21. According to the passage, why does the world's best basketball player earn more than the world's best chess player? A) Because basketball is more popular than chess. B) Because the government intervenes to ensure fair wages. C) Because chess players are less skilled than basketball players. D) Because the invisible hand rewards people based on their ability to produce valuable goods. Show Answer Correct Answer: D) Because the invisible hand rewards people based on their ability to produce valuable goods. 22. Under the Startup India initiative, what is the maximum period for which a startup can be exempt from income tax? A) 5 years. B) 3 years. C) 7 years. D) 10 years. Show Answer Correct Answer: A) 5 years. 23. Primary goal of government welfare programs A) To provide financial assistance to individuals and families in need. B) To reduce taxes for the wealthy. C) To promote economic growth through deregulation. D) To increase government surveillance of citizens. Show Answer Correct Answer: A) To provide financial assistance to individuals and families in need. 24. A student argues that federalism is important for protecting against authoritarianism. Use reasoning and evidence to support this argument. A) Because dividing power between local and national governments makes it harder for one person or group to control everything. B) Because federalism eliminates local governments. C) Because unitary systems concentrate power in one place. D) Because federalism allows local governments to ignore national laws. Show Answer Correct Answer: A) Because dividing power between local and national governments makes it harder for one person or group to control everything. 25. Contractionary Policy A) When the government seeks to slow the economy by limiting the money supply. B) When the government seeks to boost the economy by increasing the money supply. C) Difference between spending and revenue each year. D) A plan for money the government will spend. Show Answer Correct Answer: A) When the government seeks to slow the economy by limiting the money supply. 26. Which of the following sectors is explicitly encouraged by Startup India? A) Agriculture. B) Manufacturing. C) Technology. D) All of the above. Show Answer Correct Answer: D) All of the above. 27. If Congress increases government spending by the same amount it increases taxes aggregate demand will A) Remain the same. B) Decrease, these are both contractionary. C) Increase. D) Shift down. Show Answer Correct Answer: C) Increase. 28. Which of the following schemes supports the marketing of products made by MSMEs? A) Prime Minister's Employment Generation Programme (PMEGP). B) Micro and Small Enterprises-Cluster Development Programme (MSE-CDP). C) Digital India. D) Startup India. Show Answer Correct Answer: B) Micro and Small Enterprises-Cluster Development Programme (MSE-CDP). 29. What is one of the federal reserve's primary functions in the United States economy? A) Collecting federal income taxes. B) Applying import and export tariffs. C) Maintaining stock market stability. D) Regulating the nation's money supply. Show Answer Correct Answer: D) Regulating the nation's money supply. 30. What did the 16th Amendment do? A) It allowed people to speak out against the government. B) It allowed the government to levy income taxes on its population. C) It allowed the government to create NASA. D) It gave people the right to avoid paying taxes if they didn't want to. Show Answer Correct Answer: B) It allowed the government to levy income taxes on its population. 31. Plan for raising and spending money A) Bill of Attainder. B) Bill. C) Bill Budget. D) Budget. Show Answer Correct Answer: D) Budget. 32. A government subsidises the production of pineapples. This is likely to A increase the price of pineapples B raise the costs of supplying pineapples C raise revenue for the government D cause the supply of pineapples to increase at every price A) D. B) A. C) B. D) C. Show Answer Correct Answer: A) D. 33. A country has different rates of income tax depending on the level of income earned. The highest rate of income tax is cut from 40% to 38%. From this statement it can be deduced that taxation will become:A less indirect. B less progressive. C less regressive. D more difficult to evade. A) C. B) D. C) A. D) B. Show Answer Correct Answer: D) B. 34. How do democratic governments ensure that power remains dispersed? A) By eliminating free speech. B) By restricting the right to privacy. C) Through checks and balances among multiple branches of government. D) By concentrating power in the hands of a few. Show Answer Correct Answer: C) Through checks and balances among multiple branches of government. 35. A government security A) Bond. B) Major. C) Period. D) Scheme. Show Answer Correct Answer: A) Bond. 36. Which government initiative aims to provide skill training to women to enhance their employability and entrepreneurial skills? A) Startup India. B) Skill India. C) Make in India. D) Digital India. Show Answer Correct Answer: B) Skill India. 37. Your startup in India is in its second year and is struggling with the cost of patent registration. Which Indian government initiative can you use to reduce the cost of registration? A) Digital India. B) Skill India. C) Startup India. D) Pradhan Mantri Awas Yojana. Show Answer Correct Answer: C) Startup India. 38. Everyone who drives over the Scudder Falls Bridge is required to pay a toll that is used for upkeep of the bridge and roadway. Because only users of the bridge must pay, the toll is called A) A benefits-received tax. B) A progressive tax. C) A regressive tax. D) An ability-to-pay-tax. Show Answer Correct Answer: A) A benefits-received tax. 39. What is an externality, as described in the passage? A) The impact of one person's actions on the well-being of a bystander. B) The ability of a single person or firm to influence market prices. C) The failure of the market to consider the costs of production. D) The lack of competition in a market due to limited resources. Show Answer Correct Answer: A) The impact of one person's actions on the well-being of a bystander. 40. What is the eligibility criterion for a startup to register under the Startup India initiative? A) Must have a minimum capital of 1 crore. B) Must be a subsidiary of a larger company. C) Must be less than 3 years old. D) Must employ more than 100 people. Show Answer Correct Answer: C) Must be less than 3 years old. 41. Which combination of fiscal and supply-side policy measures will allow economic growth A) Increased spending; decreased money supply. B) Decreased taxes; increased education and training. C) Increased spending; decreased interest rates. D) Decreased interest rates, decreased taxes. Show Answer Correct Answer: B) Decreased taxes; increased education and training. 42. Which individual activity is used to directly influence legislative decisions? A) Discussing political issues at work. B) Collecting opinions for a yearbook. C) Watching political debates on television. D) Gathering signature for a petition. Show Answer Correct Answer: D) Gathering signature for a petition. 43. Example of a government policy aimed at protecting consumers A) Implementing tax cuts for corporations. B) Reducing regulations on food safety. C) Increasing tariffs on imported goods. D) Establishing minimum wage laws. Show Answer Correct Answer: D) Establishing minimum wage laws. 44. Some of the incovenieces with changes in the public spending is that ..... A) It is too small relative to the economy. B) It is a one time event. C) At the local level it can be too big and it distorts the economy. D) All of the above. Show Answer Correct Answer: D) All of the above. 45. How do we pay for community services? A) We don't pay for them. B) From the bank. C) Tax money. D) Selling cookies. Show Answer Correct Answer: C) Tax money. 46. Which refers to program built within the government budget designed to stabilize business cycles in an economy without any government intervention? A) Automatic stabilizer. B) Discretionary fiscal policy. C) All the above. D) None of the above. Show Answer Correct Answer: A) Automatic stabilizer. 47. When one party controls the White House and the other controls the House and Senate A) Divided Government. B) Split House. C) Two Party System. D) Bipartisan. Show Answer Correct Answer: A) Divided Government. 48. The Federal Reserve purchases and sells government securities, adjusts the discount rate to produce certain economic outcomes. What is one outcome the Federal Reserve might want to produce when purchasing government securities? A) Fostering economic expansion. B) Reducing money supply. C) Increasing interest rates. D) Fostering economic contraction. Show Answer Correct Answer: A) Fostering economic expansion. 49. What is the primary focus of right-wing or conservative governments? A) Supporting large, rapid changes to society. B) Individual freedom over government intervention. C) Achieving social equality. D) Providing government-provided health care. Show Answer Correct Answer: B) Individual freedom over government intervention. 50. What is the primary objective of the Atal Innovation Mission (AIM) launched by the Indian government? A) To provide financial aid to established businesses. B) To encourage the adoption of technology in rural areas. C) To create an innovation-driven culture and ecosystem. D) To promote foreign direct investment in Indian startups. Show Answer Correct Answer: C) To create an innovation-driven culture and ecosystem. 51. What is the purpose of the "Common Service Centers" (CSCs) under Digital India? A) To promote manufacturing industries. B) To offer a range of government services to rural areas. C) To enhance tourism. D) To provide banking services only. Show Answer Correct Answer: B) To offer a range of government services to rural areas. 52. The "Dena Bank's Stree Shakti Scheme" is aimed at providing loans to which group? A) Women entrepreneurs. B) Government employees. C) Large corporations. D) Rural farmers. Show Answer Correct Answer: A) Women entrepreneurs. 53. This Amendment created the Income Tax A) 18th. B) 16th. C) 15th. D) 17th. Show Answer Correct Answer: B) 16th. 54. How are taxes collected? A) A drive-thru window. B) By the mailman. C) Taxes aren't collected. D) They are added to the things that we buy. Show Answer Correct Answer: D) They are added to the things that we buy. 55. The CPI is calculated by taking the ..... of each of the categories and the averaging is done based on the importance of the particular commodity in the whole list. A) Retail market price. B) Wholesale market price. C) All the above. D) None of the above. Show Answer Correct Answer: A) Retail market price. 56. A team of executive branch officials A) Cabinet. B) Administration. C) Representatives. D) Bureaucracy. Show Answer Correct Answer: B) Administration. 57. What does the Federal Reserve do? A) Supplies paper currency and holds banks' reserves. B) Regulates interest rates and money supply. C) Provides unemployment insurance. D) Enforces anti-monopoly laws. Show Answer Correct Answer: B) Regulates interest rates and money supply. 58. Which tracks the changes in the prices of goods and services at producer or wholesale level? A) Producer price index. B) Wholesale price index. C) All the above. D) None of the above. Show Answer Correct Answer: B) Wholesale price index. 59. A student claims that a constitutional republic is the best form of government for protecting freedom. Use reasoning and evidence to support this claim. A) Because it has laws and elected officials that limit government power and protect rights. B) Because it allows one person to make all decisions. C) Because it eliminates elections. D) Because it ignores the rule of law. Show Answer Correct Answer: A) Because it has laws and elected officials that limit government power and protect rights. 60. One way that Congress has used its spending authority over the years is to A) . allow the president to use the line-item veto in specific situations. B) Eliminate the president's authority to impound funds. C) Force witnesses to appear before congressional committees. D) Require local governments to follow specific regulations when giving money to those governments. Show Answer Correct Answer: D) Require local governments to follow specific regulations when giving money to those governments. ← 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 4Class 12 Entrepreneurship Chapter 6 Government Policies And Support To Entrepreneurship Quiz 5Class 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