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

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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.

Dr. Urjit Patel

Pranab Mukherjee

Dr. Subramanian Swamy

Dr. Manmohan Singh

2 / 15

Which of the following can help reduce the fiscal deficit?

decreasing the burden and incidence of tax

investing in improving public goods

increasing subsidies

increasing the PSU profits

3 / 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.

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).

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

4 / 15

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

Reduced economic growth and development

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

Increased government control over the economy

Reduced foreign investment and trade

5 / 15

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

Strengthened rules-based trading system

All

Increased market access and reduced trade barriers

Improved access to technology and increased foreign investment

6 / 15

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

Income tax and sales tax

Value-added tax and service tax

Excise duty and custom duty

Property tax and wealth tax

7 / 15

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

Increased FDI and FER

Reduced FDI and increased FER

8 / 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 true

Both statements 1 and 2 are false

Statement 1 is true and Statement 2 is false.

9 / 15

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

Reduced prices of food grains

Reduced cost of production for farmers

Increased public investment in agriculture

Increased international competitiveness and shift from food crops to cash crops

10 / 15

Which of the following is a Maharatna?

Indian Oil Corporation Limited

Bharat Sanchar Nigam Limited

Hindustan Aeronautics Limited

Airport Authority of India

11 / 15

What is outsourcing?

Hiring of regular service from external sources

Hiring of permanent service from external sources

Hiring of contract service from internal sources

Hiring of temporary service from internal sources

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): 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.

Both A and R are true and R explains A.

A is false but R is true.

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

13 / 15

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

Reduced autonomy

Greater managerial and operational autonomy

Increased government control

Reduced profits

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).

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)

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

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

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

15 / 15

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

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

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

Your score is

The average score is 69%

Leaderboard – Top Scorers

Check the top scorers here!

Pos.	Name	Score	Duration	Points
1	Rashi Singh	100 %	1 minutes 52 seconds	15
2	Rashi Singh	93 %	4 minutes 50 seconds	14
3	Mannat	80 %	5 minutes 30 seconds	12
4	Palak	73 %	4 minutes 23 seconds	11
5	Palak	73 %	4 minutes 23 seconds	11
6	kaisha	73 %	6 minutes 4 seconds	11
7	Aliya	67 %	7 minutes 39 seconds	10
8	prisha	53 %	3 minutes 27 seconds	8
9	harshit	40 %	5 minutes 35 seconds	6
10	charu	40 %	18 minutes 39 seconds	6

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: Employment: Growth, Informalization, and Other Issues Class 12 MCQ Quiz – Test Your Understanding!

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

About the Quiz

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Key Topics Covered in the Quiz

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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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