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.

Dr. Urjit Patel

Dr. Manmohan Singh

Dr. Subramanian Swamy

Pranab Mukherjee

2 / 15

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

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

To reduce their autonomy

To increase government control

To reduce their profits

3 / 15

What were the main reasons for introducing reforms in India?

High rate of economic growth

Increased foreign investment

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

4 / 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 increased FER

Reduced FDI and FER

Increased FDI and reduced FER

5 / 15

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

Excise duty and custom duty

Value-added tax and service tax

Property tax and wealth tax

Income tax and sales tax

6 / 15

Also See: Employment: Growth, Informalization and Other Issues Class 12 Notes

Which of the following can help reduce the fiscal deficit?

increasing subsidies

increasing the PSU profits

decreasing the burden and incidence of tax

investing in improving public goods

7 / 15

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

Improved access to technology and increased foreign investment

Increased market access and reduced trade barriers

All

Strengthened rules-based trading system

8 / 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

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

aiding the development of poor countries by providing infrastructural investment

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

9 / 15

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

Yes, because it reduces government control over the economy

Yes, because it increases efficiency and revenue generation

No, because it increases inequality and reduces government revenue

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

10 / 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

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

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

Increased government control over the financial sector

11 / 15

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

Increased public investment in agriculture

Reduced prices of food grains

Reduced cost of production for farmers

Increased international competitiveness and shift from food crops to cash crops

12 / 15

There are two statements given below, marked as Assertion (A) and Reason (R). Read the statements and choose the correct option.

Also See: CBSE Class 12 Biology Previous Year Question Papers with Solutions PDF Download

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 false but R is true.

Both A and R are true and R explains A.

A is true but R is false.

13 / 15

What are the advantages of globalization for the Indian economy?

Increased market access and reduced trade barriers

All

Increased employment and job opportunities

Improved access to technology and increased foreign investment

14 / 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

15 / 15

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

import licensing was abolished

export duties were removed

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

the rate of corporation tax was reduced

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