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

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Chapter 3-Liberalization, Privatization, and Globalization: An Appraisal

1 / 15

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

To reduce their profits

To reduce their autonomy

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

To increase government control

2 / 15

What is disinvestment?

Reduction in government investment in public sector enterprises

Nationalization of private sector enterprises

Privatization of public sector enterprises

Increased government control over public sector enterprises

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

Increased FDI and reduced FER

Reduced FDI and FER

Reduced FDI and increased FER

4 / 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 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.

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

5 / 15

Which of the following is a Maharatna?

Hindustan Aeronautics Limited

Airport Authority of India

Bharat Sanchar Nigam Limited

Indian Oil Corporation Limited

6 / 15

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

Reduced autonomy

Greater managerial and operational autonomy

Increased government control

Reduced profits

7 / 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.

8 / 15

What are the advantages of globalization for the Indian economy?

Increased employment and job opportunities

Increased market access and reduced trade barriers

All

Improved access to technology and increased foreign investment

9 / 15

What is the main objective of disinvestment in India?

To reduce government control over public sector enterprises

To improve the efficiency of public sector enterprises

To promote privatization

To increase government revenue

10 / 15

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

Income tax and sales tax

Property tax and wealth tax

Value-added tax and service tax

Excise duty and custom duty

11 / 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

P and Q only

Q and S only

Q and R only

P and R only

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 but R does not explain A.

A is false but R is true.

Both A and R are true and R explains A.

13 / 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

14 / 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 and R explains A.

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

A is true but R is false.

A is false but 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?

Increased government control over the financial sector

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

Nationalization of banks and imposition of strict controls on 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 46%

Leaderboard – Top Scorers

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Pos.	Name	Score	Duration	Points
1	Rashmika	80 %	1 minutes 45 seconds	12
2	Naman	80 %	4 minutes 9 seconds	12
3	Mg Liron	80 %	10 minutes 57 seconds	12
4	Yashika	73 %	1 minutes 27 seconds	11
5	palak	73 %	4 minutes 58 seconds	11
6	Shreyashii	67 %	5 minutes 19 seconds	10
7	.	67 %	5 minutes 56 seconds	10
8	Yahana	60 %	1 minutes 19 seconds	9
9	Shreyas	60 %	6 minutes 36 seconds	9
10	rashee	60 %	8 minutes 45 seconds	9
11	vansh	53 %	1 minutes 57 seconds	8
12	Naina	53 %	4 minutes 41 seconds	8
13	roar	53 %	5 minutes 18 seconds	8
14	aish	53 %	13 minutes 11 seconds	8
15	abhay	47 %	5 minutes 7 seconds	7
16	Rashpreet	47 %	5 minutes 7 seconds	7
17	Rashida	40 %	4 minutes 12 seconds	6
18	....................................	40 %	5 minutes 13 seconds	6
19	Prince Gupta	33 %	1 minutes 53 seconds	5
20	Raj	33 %	1 minutes 55 seconds	5
21	Ishant shaw	33 %	6 minutes 49 seconds	5
22	Ref	27 %	1 minutes 6 seconds	4
23	Tahmeed Anwar Siddique	20 %	39 seconds	3
24	Me	20 %	39 seconds	3
25	Saniya	20 %	2 minutes 46 seconds	3
26	dfmaxi	20 %	2 minutes 59 seconds	3
27	ANCD	13 %	34 seconds	2
28	Chcfg	7 %	32 seconds	1
29	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

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About the Quiz

Why Take This Quiz?

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Key Topics Covered in the Quiz

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