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

WhatsApp Group Join Now

Telegram Group Join Now

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

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

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

setting the limit for domestic and foreign investments in a country

2 / 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

3 / 15

What is the main objective of disinvestment in India?

To increase government revenue

To improve the efficiency of public sector enterprises

To promote privatization

To reduce government control over public sector enterprises

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

Increased FDI and reduced FER

Reduced FDI and increased FER

Reduced FDI and FER

5 / 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

Strengthened rules-based trading system

All

6 / 15

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

Increased government control

Reduced profits

Greater managerial and operational autonomy

Reduced autonomy

7 / 15

Also See: Deep Water Class 12 MCQ Quiz – Test Your Understanding!

What were the main reasons for introducing reforms in India?

High rate of economic growth

Increased foreign investment

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

8 / 15

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

Income tax and sales tax

Value-added tax and service tax

Property tax and wealth tax

Excise duty and custom duty

9 / 15

Which of the following can help reduce the fiscal deficit?

investing in improving public goods

increasing the PSU profits

decreasing the burden and incidence of tax

increasing subsidies

10 / 15

What is outsourcing?

Hiring of temporary service from internal sources

Hiring of permanent service from external sources

Hiring of contract service from internal sources

Hiring of regular service from external sources

11 / 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 not 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 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)

12 / 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 R only

P and Q only

P and R only

Q and S only

13 / 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 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.

A is true but R is false.

14 / 15

Which of the following is a Maharatna?

Hindustan Aeronautics Limited

Bharat Sanchar Nigam Limited

Indian Oil Corporation Limited

Airport Authority of India

15 / 15

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

To increase government control

To reduce their autonomy

To reduce their profits

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

Your score is

The average score is 63%

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

More Class 12 Economics MCQ Quizzes

Take the quiz now and strengthen your exam preparation!

WhatsApp Group Join Now

Telegram Group Join Now

Share this Article

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

Leave a Comment Cancel reply

About the Quiz

Why Take This Quiz?

Leaderboard – Top Scorers

Key Topics Covered in the Quiz

More Class 12 Economics MCQ Quizzes

Related posts:

Leave a Comment Cancel reply