Liberalization, Privatization, and Globalization Class 12 MCQ Quiz – Test Your Understanding!

Are you ready to test your knowledge of Liberalization, Privatization, and Globalization (LPG) from the Class 12 Economics syllabus? This chapter explores the 1991 economic reforms that transformed India’s economy, paving the way for globalization and market-driven growth.

About the Quiz

Chapter Name: Liberalization, Privatization, and Globalization: An Appraisal
Subject: Economics
Book: NCERT Class 12 Economics
Question Type: Multiple Choice Questions (MCQs)
Leaderboard: Yes (Check Your Rank!)

Why Take This Quiz?

✔ Helps in CBSE board exam revision
✔ Strengthens understanding of economic reforms of 1991
✔ Enhances knowledge of LPG policies and their impact
✔ Track your progress with the leaderboard

Click Below to Start the Quiz!

Chapter 3-Liberalization, Privatization, and Globalization: An Appraisal

1 / 15

There are two statements given below, marked as Assertion (A) and Reason (R). Read the statements and choose the correct option.

Assertion (A): According to the Government of India, the disinvestment of Public Sector Enterprises has brought accountability and professionalism to them.

Reason (R): The Government of India used disinvestment mainly to improve financial discipline and facilitate modernization.

A is true but R is false.

A is false but R is true.

Both A and R are true but R does not explain A.

Both A and R are true and R explains A.

2 / 15

How has the opening up of the Indian economy affected Foreign Direct Investments (FDI) and Foreign Exchange Reserves (FER)?

Increased FDI and FER

Increased FDI and reduced FER

Reduced FDI and FER

Reduced FDI and increased FER

3 / 15

Which of the following can help reduce the fiscal deficit?

investing in improving public goods

increasing the PSU profits

decreasing the burden and incidence of tax

increasing subsidies

4 / 15

What is outsourcing?

Hiring of permanent service from external sources

Hiring of contract service from internal sources

Hiring of regular service from external sources

Hiring of temporary service from internal sources

5 / 15

What is disinvestment?

Reduction in government investment in public sector enterprises

Privatization of public sector enterprises

Nationalization of private sector enterprises

Increased government control over public sector enterprises

6 / 15

Which two taxes were subsumed in Goods and Services Tax (GST)?

Value-added tax and service tax

Income tax and sales tax

Excise duty and custom duty

Property tax and wealth tax

7 / 15

Which of the following statements correctly represents actions taken by the government towards liberalization?

P: levying high tariffs to discourage import and promote the consumption of domestic goods and services

Q: devaluation of the rupees to encourage the inflow of foreign exchange

R: allowing for private banks to make decisions independent of the RBI restrictions

S: fixing prices of certain industrial goods in order to support increased consumption of these goods to boost the manufacturing industry

Q and R only

P and R only

Q and S only

P and Q only

8 / 15

What is the main impact of the economic reform process on the Indian economy?

Reduced foreign investment and trade

Reduced economic growth and development

Increased government control over the economy

Increased economic growth and development, and integration with the global economy

9 / 15

How has the economic reform process affected the agricultural sector in India?

Increased public investment in agriculture

Reduced cost of production for farmers

Reduced prices of food grains

Increased international competitiveness and shift from food crops to cash crops

10 / 15

Why is it necessary to become a member of the WTO?

All

Improved access to technology and increased foreign investment

Increased market access and reduced trade barriers

Strengthened rules-based trading system

11 / 15

What is the main objective of disinvestment in India?

To increase government revenue

To promote privatization

To reduce government control over public sector enterprises

To improve the efficiency of public sector enterprises

12 / 15

What are the advantages of globalization for the Indian economy?

Increased market access and reduced trade barriers

Improved access to technology and increased foreign investment

All

Increased employment and job opportunities

13 / 15

There are two statements given below, marked as Statement (1) and Statement (2). Read the statements and choose the correct option.

Statement (1): Air India, a fully owned Public Sector Undertaking (PSU) was disinvested and sold to a private entity.

Statement (2): Public Sector Undertakings (PSU) are sold to create more direct and/or indirect employment opportunities in the country.

Statement 1 is false and Statement 2 is true.

Both statements 1 and 2 are false

Both statements 1 and 2 are true

Statement 1 is true and Statement 2 is false.

14 / 15

Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:

Assertion (A): Every year government fixes a target for disinvestment of Public Sector Enterprises (PSEs).

Reason (R): Disinvestment is an excellent tool for discarding the loss incurring Public Sector Enterprises (PSEs).

Assertion (A) is false but Reason (R) is true.

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

Assertion (A) is true but Reason (R) is false.

15 / 15

There are two statements given below, marked as Assertion (A) and Reason (R). Read the statements and choose the correct option.

Assertion (A): The Devaluation of the Indian rupee in 1991 resulted in the inflow of foreign exchange.

Reason (R): The Devaluation of the Indian rupee was a step to get taken to get more foreign investments.

A is false but R is true.

Both A and R are true and R explains A.

Both A and R are true but R does not explain A.

A is true but R is false.

Your score is

The average score is 60%

Leaderboard – Top Scorers

Check the top scorers here!

Pos.	Name	Score	Duration	Points
1	rashee	60 %	8 minutes 45 seconds	9

Key Topics Covered in the Quiz

✔ Reasons for economic reforms in India
✔ Features of Liberalization, Privatization, and Globalization (LPG)
✔ Impact of LPG on various sectors of the economy
✔ Role of WTO and globalization in India
✔ Positive and negative consequences of economic reforms

More Class 12 Economics MCQ Quizzes

Take the quiz now and strengthen your exam preparation!

WhatsApp Group Join Now

Telegram Group Join Now

Instagram Follow Now

Spread the love

About the Quiz

Why Take This Quiz?

Leaderboard – Top Scorers

Key Topics Covered in the Quiz

More Class 12 Economics MCQ Quizzes

Related posts:

Leave a Comment Cancel reply