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

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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 can help reduce the fiscal deficit?

increasing the PSU profits

increasing subsidies

investing in improving public goods

decreasing the burden and incidence of tax

2 / 15

What is outsourcing?

Hiring of temporary service from internal sources

Hiring of regular service from external sources

Hiring of contract service from internal sources

Hiring of permanent service from external sources

3 / 15

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

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

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

Increased government control over the financial sector

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

4 / 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. Manmohan Singh

Pranab Mukherjee

Dr. Urjit Patel

Dr. Subramanian Swamy

5 / 15

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

No, because it increases inequality and reduces government revenue

Yes, because it reduces government control over the economy

Yes, because it increases efficiency and revenue generation

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

6 / 15

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

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

Increased government control over the economy

Reduced foreign investment and trade

Reduced economic growth and development

7 / 15

Also See: CBSE Class 12 English Topper's Answer Sheet 2024: PDF Download

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

Increased FDI and reduced FER

Reduced FDI and FER

Reduced FDI and increased FER

Increased FDI and FER

8 / 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.

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.

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).

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

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

10 / 15

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

export duties were removed

import licensing was abolished

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

the rate of corporation tax was reduced

11 / 15

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

To reduce their profits

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

To increase government control

To reduce their autonomy

12 / 15

Which of the following is a Maharatna?

Indian Oil Corporation Limited

Airport Authority of India

Hindustan Aeronautics Limited

Bharat Sanchar Nigam Limited

13 / 15

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

Increased public investment in agriculture

Reduced cost of production for farmers

Increased international competitiveness and shift from food crops to cash crops

Reduced prices of food grains

14 / 15

What were the main reasons for introducing reforms in India?

High rate of economic growth

Low rate of inflation

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

Increased foreign investment

15 / 15

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

Value-added tax and service tax

Excise duty and custom duty

Income tax and sales tax

Property tax and wealth tax

Your score is

The average score is 63%

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	AKSHAT	87 %	1 minutes 49 seconds	13
5	V	87 %	5 minutes 53 seconds	13
6	V	87 %	5 minutes 58 seconds	13
7	Gurleen	80 %	1 minutes 47 seconds	12
8	Divya	80 %	2 minutes 34 seconds	12
9	aaru	80 %	3 minutes 3 seconds	12
10	Mannat	80 %	5 minutes 30 seconds	12
11	Shereena	80 %	7 minutes 52 seconds	12
12	Aafiya	73 %	2 minutes 46 seconds	11
13	Trisha	73 %	3 minutes 28 seconds	11
14	Harshali	73 %	4 minutes 7 seconds	11
15	Palak	73 %	4 minutes 23 seconds	11
16	Palak	73 %	4 minutes 23 seconds	11
17	zx	73 %	4 minutes 49 seconds	11
18	kaisha	73 %	6 minutes 4 seconds	11
19	V	73 %	7 minutes 13 seconds	11
20	harshini	73 %	13 minutes 39 seconds	11
21	Vincent	67 %	2 minutes 54 seconds	10
22	B	67 %	3 minutes 19 seconds	10
23	Trisha	67 %	3 minutes 41 seconds	10
24	Rina	67 %	3 minutes 44 seconds	10
25	Aashi	67 %	3 minutes 48 seconds	10
26	mgh	67 %	4 minutes 9 seconds	10
27	Priya Rawat	67 %	7 minutes 13 seconds	10
28	Aliya	67 %	7 minutes 39 seconds	10
29	Khan	60 %	3 minutes 24 seconds	9
30	Hishika Bajaj	60 %	3 minutes 30 seconds	9
31	Thiya	60 %	4 minutes 11 seconds	9
32	Maulik	60 %	5 minutes 32 seconds	9
33	Anshika	60 %	5 minutes 39 seconds	9
34	Shshsh	60 %	6 minutes 4 seconds	9
35	Rhythm	60 %	6 minutes 44 seconds	9
36	Simran	60 %	8 minutes 28 seconds	9
37	JYOTI	60 %	22 minutes 34 seconds	9
38	bb	53 %	2 minutes 43 seconds	8
39	Ansh bhaiya	53 %	2 minutes 44 seconds	8
40	prisha	53 %	3 minutes 27 seconds	8
41	Kunal Rathee	53 %	3 minutes 38 seconds	8
42	Mouli Gupta	53 %	4 minutes 46 seconds	8
43	AKSHAT MATHUR	53 %	5 minutes 1 seconds	8
44	aaru	53 %	7 minutes 17 seconds	8
45	Jyoti	53 %	7 minutes 41 seconds	8
46	Vansh	53 %	10 minutes 5 seconds	8
47	kiruba	53 %	11 minutes 19 seconds	8
48	Gurleen	47 %	3 minutes 8 seconds	7
49	ttrgtr	47 %	4 minutes 34 seconds	7
50	Sanyukta gupta	47 %	4 minutes 52 seconds	7
51	Sunil	47 %	6 minutes 57 seconds	7
52	Laksy	47 %	7 minutes 38 seconds	7
53	Bhavika jain	40 %	3 minutes 41 seconds	6
54	Hwjdm	40 %	5 minutes	6
55	harshit	40 %	5 minutes 35 seconds	6
56	charu	40 %	18 minutes 39 seconds	6
57	Ritvik	33 %	4 minutes 50 seconds	5
58	Xxx	33 %	17 minutes 3 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

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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

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About the Quiz

Why Take This Quiz?

Leaderboard – Top Scorers

Key Topics Covered in the Quiz

More Class 12 Economics MCQ Quizzes

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