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

What is outsourcing?

Hiring of permanent service from external sources

Hiring of temporary service from internal sources

Hiring of contract service from internal sources

Hiring of regular service from external sources

2 / 15

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

Reduced cost of production for farmers

Reduced prices of food grains

Increased public investment in agriculture

Increased international competitiveness and shift from food crops to cash crops

3 / 15

What is disinvestment?

Privatization of public sector enterprises

Reduction in government investment in public sector enterprises

Increased government control over public sector enterprises

Nationalization of private sector enterprises

4 / 15

What were the main reasons for introducing reforms in India?

Low rate of inflation

High rate of economic growth

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

5 / 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

Nationalization of banks and imposition of strict controls on 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

6 / 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.

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.

7 / 15

What are the advantages of globalization for the Indian economy?

Increased employment and job opportunities

Increased market access and reduced trade barriers

Improved access to technology and increased foreign investment

All

8 / 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 true but R is false.

Both A and R are true and R explains A.

A is false but R is true.

9 / 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

10 / 15

Which of the following is a Maharatna?

Bharat Sanchar Nigam Limited

Airport Authority of India

Hindustan Aeronautics Limited

Indian Oil Corporation Limited

11 / 15

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

Reduced FDI and FER

Increased FDI and reduced FER

Increased FDI and FER

Reduced FDI and increased FER

12 / 15

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

All

Increased market access and reduced trade barriers

Improved access to technology and increased foreign investment

Strengthened rules-based trading system

13 / 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

Dr. Urjit Patel

Pranab Mukherjee

Dr. Subramanian Swamy

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 false but Reason (R) is true.

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

15 / 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

Q and S only

P and R only

Q and R only

P and Q only

Your score is

The average score is 64%

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	Divya	80 %	2 minutes 34 seconds	12
7	Mannat	80 %	5 minutes 30 seconds	12
8	Shereena	80 %	7 minutes 52 seconds	12
9	Aafiya	73 %	2 minutes 46 seconds	11
10	Trisha	73 %	3 minutes 28 seconds	11
11	Harshali	73 %	4 minutes 7 seconds	11
12	Palak	73 %	4 minutes 23 seconds	11
13	Palak	73 %	4 minutes 23 seconds	11
14	zx	73 %	4 minutes 49 seconds	11
15	kaisha	73 %	6 minutes 4 seconds	11
16	V	73 %	7 minutes 13 seconds	11
17	harshini	73 %	13 minutes 39 seconds	11
18	Vincent	67 %	2 minutes 54 seconds	10
19	Trisha	67 %	3 minutes 41 seconds	10
20	Rina	67 %	3 minutes 44 seconds	10
21	Aashi	67 %	3 minutes 48 seconds	10
22	mgh	67 %	4 minutes 9 seconds	10
23	Aliya	67 %	7 minutes 39 seconds	10
24	Khan	60 %	3 minutes 24 seconds	9
25	Hishika Bajaj	60 %	3 minutes 30 seconds	9
26	Thiya	60 %	4 minutes 11 seconds	9
27	Maulik	60 %	5 minutes 32 seconds	9
28	Anshika	60 %	5 minutes 39 seconds	9
29	Rhythm	60 %	6 minutes 44 seconds	9
30	JYOTI	60 %	22 minutes 34 seconds	9
31	bb	53 %	2 minutes 43 seconds	8
32	Ansh bhaiya	53 %	2 minutes 44 seconds	8
33	prisha	53 %	3 minutes 27 seconds	8
34	Kunal Rathee	53 %	3 minutes 38 seconds	8
35	Mouli Gupta	53 %	4 minutes 46 seconds	8
36	Jyoti	53 %	7 minutes 41 seconds	8
37	Vansh	53 %	10 minutes 5 seconds	8
38	kiruba	53 %	11 minutes 19 seconds	8
39	Sunil	47 %	6 minutes 57 seconds	7
40	Laksy	47 %	7 minutes 38 seconds	7
41	Bhavika jain	40 %	3 minutes 41 seconds	6
42	harshit	40 %	5 minutes 35 seconds	6
43	charu	40 %	18 minutes 39 seconds	6
44	Ritvik	33 %	4 minutes 50 seconds	5
45	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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Also See: Indian Economy on the Eve of Independence Class 12 MCQ Quiz – Test Your Knowledge!

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

About the Quiz

Why Take This Quiz?

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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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