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

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 Q only

P and R only

Q and S only

2 / 15

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

Reduced cost of production for farmers

Increased public investment in agriculture

Reduced prices of food grains

Increased international competitiveness and shift from food crops to cash crops

3 / 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

Statement 1 is true and Statement 2 is false.

Both statements 1 and 2 are true

4 / 15

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

Increased FDI and FER

Reduced FDI and FER

Reduced FDI and increased FER

Increased FDI and reduced FER

5 / 15

Which of the following policies was adopted to increase the competitive position of Indian goods in the international markets?

the rate of corporation tax was reduced

Foreign Institutional Investors (FII) were allowed to invest in India

export duties were removed

import licensing was abolished

6 / 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 true but Reason (R) is false.

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 false but Reason (R) is true.

7 / 15

Why does the government identify PSEs and declare them as Maharatnas, Navratnas, and Miniratnas?

To reduce their autonomy

To reduce their profits

To improve efficiency, infuse professionalism, and enable them to compete globally

To increase government control

8 / 15

What is the benefit given to Maharatnas, Navratnas, and Miniratnas?

Reduced autonomy

Increased government control

Greater managerial and operational autonomy

Reduced profits

9 / 15

Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below.

Assertion (A): In 1991, as an immediate measure to resolve the Balance of Payments crisis, the rupee was devalued against foreign currencies.

Reason (R): Devaluation of currency was eminent, exchange reserves.

Both Assertion (A) and Reason (R) are true, but Reason (R) is the explanation of Assertion (A).

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

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.

10 / 15

What were the main reasons for introducing reforms in India?

High rate of economic growth

Steep fall in foreign exchange reserves, unfavorable Balance of Payments, huge burden of external debt, high rate of price inflation, and huge burden of fiscal deficit

Low rate of inflation

Increased foreign investment

11 / 15

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

Property tax and wealth tax

Income tax and sales tax

Value-added tax and service tax

Excise duty and custom duty

12 / 15

Which of the following falls under the role of the World Trade Organisation?

mandating the level of tax levied on foreign firms in developing countries

setting the limit for domestic and foreign investments in a country

aiding the development of poor countries by providing infrastructural investment

providing a platform for member countries to decide future tariff-related strategies

13 / 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.

A is true but R is false.

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

Both A and R are true and R explains A.

14 / 15

…………….was the Indian Finance Minister in 1991, acknowledged for his capabilities to steer away the economic crisis looming large on the erstwhile Indian Economy.

Dr. Urjit Patel

Dr. Manmohan Singh

Pranab Mukherjee

Dr. Subramanian Swamy

15 / 15

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

Increased market access and reduced trade barriers

Strengthened rules-based trading system

Improved access to technology and increased foreign investment

All

Your score is

The average score is 51%

Leaderboard – Top Scorers

Check the top scorers here!

Pos.	Name	Score	Duration	Points
1	Karan Shukla	87 %	11 minutes 15 seconds	13
2	Rashmika	80 %	1 minutes 45 seconds	12
3	B	80 %	2 minutes 18 seconds	12
4	Hardik	80 %	3 minutes 45 seconds	12
5	Naman	80 %	4 minutes 9 seconds	12
6	Mg Liron	80 %	10 minutes 57 seconds	12
7	Yashika	73 %	1 minutes 27 seconds	11
8	Rashi	73 %	3 minutes 32 seconds	11
9	xyz	73 %	3 minutes 34 seconds	11
10	palak	73 %	4 minutes 58 seconds	11
11	Shreyashii	67 %	5 minutes 19 seconds	10
12	.	67 %	5 minutes 56 seconds	10
13	bi	67 %	6 minutes 25 seconds	10
14	Shivam	67 %	6 minutes 40 seconds	10
15	Id	67 %	16 minutes 15 seconds	10
16	Yahana	60 %	1 minutes 19 seconds	9
17	tariq	60 %	4 minutes 38 seconds	9
18	Rashi	60 %	4 minutes 59 seconds	9
19	shruti bhardwaj	60 %	6 minutes 6 seconds	9
20	Shreyas	60 %	6 minutes 36 seconds	9
21	rashee	60 %	8 minutes 45 seconds	9
22	vansh	53 %	1 minutes 57 seconds	8
23	Sakshi	53 %	3 minutes 45 seconds	8
24	Naina	53 %	4 minutes 41 seconds	8
25	roar	53 %	5 minutes 18 seconds	8
26	hema	53 %	5 minutes 39 seconds	8
27	aish	53 %	13 minutes 11 seconds	8
28	Raj	47 %	4 minutes 48 seconds	7
29	abhay	47 %	5 minutes 7 seconds	7
30	Rashpreet	47 %	5 minutes 7 seconds	7
31	Rashida	40 %	4 minutes 12 seconds	6
32	....................................	40 %	5 minutes 13 seconds	6
33	Prince Gupta	33 %	1 minutes 53 seconds	5
34	Raj	33 %	1 minutes 55 seconds	5
35	Ishant shaw	33 %	6 minutes 49 seconds	5
36	Ref	27 %	1 minutes 6 seconds	4
37	Tahmeed Anwar Siddique	20 %	39 seconds	3
38	Me	20 %	39 seconds	3
39	Om	20 %	1 minutes 30 seconds	3
40	Saniya	20 %	2 minutes 46 seconds	3
41	dfmaxi	20 %	2 minutes 59 seconds	3
42	ANCD	13 %	34 seconds	2
43	Sujay	13 %	1 minutes 21 seconds	2
44	Chcfg	7 %	32 seconds	1
45	Ram	7 %	2 minutes 22 seconds	1

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

Spread the love

Also See: Journey to the End of the Earth Class 12: Important Questions and Answers

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