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

WhatsApp Group Join Now

Telegram Group Join Now

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

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

Pranab Mukherjee

Dr. Manmohan Singh

Dr. Subramanian Swamy

Dr. Urjit Patel

2 / 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 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.

3 / 15

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

Reduced foreign investment and trade

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

Reduced economic growth and development

Increased government control over the economy

4 / 15

What is outsourcing?

Hiring of regular service from external sources

Hiring of temporary service from internal sources

Hiring of contract service from internal sources

Hiring of permanent service from external sources

5 / 15

Which of the following can help reduce the fiscal deficit?

decreasing the burden and incidence of tax

increasing the PSU profits

investing in improving public goods

increasing subsidies

6 / 15

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

Reduced autonomy

Increased government control

Reduced profits

Greater managerial and operational autonomy

7 / 15

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

To reduce their autonomy

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

To reduce their profits

To increase government control

8 / 15

What is the main objective of disinvestment in India?

To improve the efficiency of public sector enterprises

To increase government revenue

To promote privatization

To reduce government control over public sector enterprises

9 / 15

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

Increased international competitiveness and shift from food crops to cash crops

Increased public investment in agriculture

Reduced cost of production for farmers

Reduced prices of food grains

10 / 15

Do you agree that profit-making public sector undertakings (PSUs) should be privatized? Why?

Yes, because it increases efficiency and revenue generation

No, because it leads to job losses and reduced social welfare

No, because it increases inequality and reduces government revenue

Yes, because it reduces government control over the economy

11 / 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 true and Statement 2 is false.

Both statements 1 and 2 are true

Both statements 1 and 2 are false

Statement 1 is false and Statement 2 is true.

12 / 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.

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

A is false but R is true.

A is true but R is false.

Both A and R are true and R explains A.

13 / 15

What were the two major steps taken by the Government of India in the financial sector under the Economic Reforms of 1991?

Increased government control over the financial sector

Reduction in the role of the private sector in the financial sector

Change in the role of the Reserve Bank of India (RBI) from regulator to facilitator and origin of private banks

Nationalization of banks and imposition of strict controls on the financial sector

14 / 15

Which of the following is a Maharatna?

Indian Oil Corporation Limited

Bharat Sanchar Nigam Limited

Airport Authority of India

Hindustan Aeronautics Limited

15 / 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.

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

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

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.

Your score is

The average score is 66%

Leaderboard – Top Scorers

Check the top scorers here!

Pos.	Name	Score	Duration	Points
1	Hishika Bajaj	100 %	51 seconds	15
2	Rashi Singh	100 %	1 minutes 52 seconds	15
3	Rashi Singh	93 %	4 minutes 50 seconds	14
4	Mannat	80 %	5 minutes 30 seconds	12
5	Shereena	80 %	7 minutes 52 seconds	12
6	Palak	73 %	4 minutes 23 seconds	11
7	Palak	73 %	4 minutes 23 seconds	11
8	kaisha	73 %	6 minutes 4 seconds	11
9	Aashi	67 %	3 minutes 48 seconds	10
10	Aliya	67 %	7 minutes 39 seconds	10
11	Hishika Bajaj	60 %	3 minutes 30 seconds	9
12	Maulik	60 %	5 minutes 32 seconds	9
13	prisha	53 %	3 minutes 27 seconds	8
14	Sunil	47 %	6 minutes 57 seconds	7
15	Bhavika jain	40 %	3 minutes 41 seconds	6
16	harshit	40 %	5 minutes 35 seconds	6
17	charu	40 %	18 minutes 39 seconds	6
18	Ritvik	33 %	4 minutes 50 seconds	5

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

Share this Article

Also See: Determination of Income and Employment Class 12 MCQ Quiz – Test Your Understanding!

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

About the Quiz

Why Take This Quiz?

Leaderboard – Top Scorers

Key Topics Covered in the Quiz

More Class 12 Economics MCQ Quizzes

Leave a Comment Cancel reply

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