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

…………….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. Urjit Patel

Dr. Subramanian Swamy

Dr. Manmohan Singh

2 / 15

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

To increase government control

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

To reduce their autonomy

To reduce their profits

3 / 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

Increased FDI and reduced FER

Reduced FDI and increased FER

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

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).

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.

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

6 / 15

What is the main objective of disinvestment in India?

To increase government revenue

To improve the efficiency of public sector enterprises

To reduce government control over public sector enterprises

To promote privatization

7 / 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 true but R is false.

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.

8 / 15

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

Increased international competitiveness and shift from food crops to cash crops

Reduced prices of food grains

Increased public investment in agriculture

Reduced cost of production for farmers

9 / 15

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

Value-added tax and service tax

Income tax and sales tax

Property tax and wealth tax

Excise duty and custom duty

10 / 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 increases efficiency and revenue generation

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

Yes, because it reduces government control over the economy

11 / 15

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

setting the limit for domestic and foreign investments in a country

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

aiding the development of poor countries by providing infrastructural investment

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

12 / 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

13 / 15

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

Greater managerial and operational autonomy

Reduced autonomy

Reduced profits

Increased government control

14 / 15

What were the main reasons for introducing reforms in India?

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

High rate of economic growth

Increased foreign investment

15 / 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.

Both statements 1 and 2 are true

Statement 1 is true and Statement 2 is false.

Statement 1 is false and Statement 2 is true.

Both statements 1 and 2 are false

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	V	87 %	5 minutes 53 seconds	13
5	V	87 %	5 minutes 58 seconds	13
6	Mannat	80 %	5 minutes 30 seconds	12
7	Shereena	80 %	7 minutes 52 seconds	12
8	Palak	73 %	4 minutes 23 seconds	11
9	Palak	73 %	4 minutes 23 seconds	11
10	zx	73 %	4 minutes 49 seconds	11
11	kaisha	73 %	6 minutes 4 seconds	11
12	V	73 %	7 minutes 13 seconds	11
13	harshini	73 %	13 minutes 39 seconds	11
14	Aashi	67 %	3 minutes 48 seconds	10
15	mgh	67 %	4 minutes 9 seconds	10
16	Aliya	67 %	7 minutes 39 seconds	10
17	Hishika Bajaj	60 %	3 minutes 30 seconds	9
18	Maulik	60 %	5 minutes 32 seconds	9
19	JYOTI	60 %	22 minutes 34 seconds	9
20	bb	53 %	2 minutes 43 seconds	8
21	prisha	53 %	3 minutes 27 seconds	8
22	Mouli Gupta	53 %	4 minutes 46 seconds	8
23	Sunil	47 %	6 minutes 57 seconds	7
24	Laksy	47 %	7 minutes 38 seconds	7
25	Bhavika jain	40 %	3 minutes 41 seconds	6
26	harshit	40 %	5 minutes 35 seconds	6
27	charu	40 %	18 minutes 39 seconds	6
28	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

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Also See: Indian Economy on the Eve of Independence: Class 12 Notes and Study Material

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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