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

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.

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.

2 / 15

What is the main objective of disinvestment in India?

To promote privatization

To increase government revenue

To improve the efficiency of public sector enterprises

To reduce government control over public sector enterprises

3 / 15

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

Yes, because it increases efficiency and revenue generation

Yes, because it reduces government control over the economy

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

No, because it increases inequality and reduces government revenue

4 / 15

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

export duties were removed

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

import licensing was abolished

the rate of corporation tax was reduced

5 / 15

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

Property tax and wealth tax

Income tax and sales tax

Value-added tax and service tax

Excise duty and custom duty

6 / 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

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

7 / 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

Statement 1 is true and Statement 2 is false.

Both statements 1 and 2 are false

8 / 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. Subramanian Swamy

Dr. Urjit Patel

Pranab Mukherjee

9 / 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 but R does not explain A.

A is true but R is false.

A is false but R is true.

Both A and R are true and R explains A.

10 / 15

What is outsourcing?

Hiring of permanent service from external sources

Hiring of regular service from external sources

Hiring of temporary service from internal sources

Hiring of contract service from internal sources

11 / 15

Which of the following can help reduce the fiscal deficit?

increasing the PSU profits

increasing subsidies

decreasing the burden and incidence of tax

investing in improving public goods

12 / 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, but Reason (R) is the explanation of Assertion (A).

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

13 / 15

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

Reduced prices of food grains

Increased international competitiveness and shift from food crops to cash crops

Reduced cost of production for farmers

Increased public investment in agriculture

14 / 15

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

Increased government control

Reduced autonomy

Reduced profits

Greater managerial and operational autonomy

15 / 15

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

Reduced economic growth and development

Increased government control over the economy

Reduced foreign investment and trade

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

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	Kunal Rathee	53 %	3 minutes 38 seconds	8
25	Mouli Gupta	53 %	4 minutes 46 seconds	8
26	kiruba	53 %	11 minutes 19 seconds	8
27	Sunil	47 %	6 minutes 57 seconds	7
28	Laksy	47 %	7 minutes 38 seconds	7
29	Bhavika jain	40 %	3 minutes 41 seconds	6
30	harshit	40 %	5 minutes 35 seconds	6
31	charu	40 %	18 minutes 39 seconds	6
32	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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Also See: 2024-25 Class 12 Economics Sample Paper: Your Roadmap to Success

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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