Liberalisation, Privatisation and Globalisation (LPG) MCQs with Answers | 20 Important NCERT Economics Questions Set 1

Liberalisation, Privatisation and Globalisation (LPG) MCQs with Answers | 20 Important NCERT Economics Questions

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Question 1 of 20

In which year were economic reforms introduced in India?

7 June 1905 12 June 1905 13 June 1905 17 June 1905

Question 2 of 20

The 1991 economic reforms were introduced due to:

Food shortage Balance of Payments crisis Population growth Industrial boom

Question 3 of 20

In 1991, India's foreign exchange reserves were sufficient for only about:

One month Six months One year Two weeks

Question 4 of 20

India received financial assistance from:

WTO and ADB IMF and World Bank UN and WTO RBI and NABARD

Question 5 of 20

The New Economic Policy (NEP) was announced in:

1980 1985 1991 2000

Question 6 of 20

NEP mainly consisted of:

Socialism LPG Reforms Nationalisation Land Reforms

Question 7 of 20

LPG stands for:

Liberalisation, Privatisation and Globalisation Labour, Production and Growth Liberal Policy Growth Local Production Growth

Question 8 of 20

Stabilisation measures are:

Long-term measures Medium-term measures Short-term measures Permanent measures

Question 9 of 20

Structural reforms are:

Temporary measures Long-term measures Seasonal measures Emergency measures

Question 10 of 20

Liberalisation means:

Increasing restrictions Removal of unnecessary controls and restrictions Nationalisation Socialisation

Question 11 of 20

Before 1991, entrepreneurs needed:

Tax certificate Export permit Industrial License Passport

Question 12 of 20

Industrial licensing was abolished for:

All industries Most industries No industries Only public sector industries

Question 13 of 20

Which sector regulates the financial system in India?

SEBI NABARD RBI LIC

Question 14 of 20

Financial sector reforms aimed to reduce RBI's role as:

Facilitator Regulator Investor Exporter

Question 15 of 20

Foreign investment limit in banks was raised to about:

25% 50% 74% 100%

Question 16 of 20

FII stands for:

Foreign Industrial Investment Foreign Institutional Investor Foreign Import Institution Foreign Internal Investment

Question 17 of 20

Taxes on income are called:

Indirect Taxes Customs Duties Direct Taxes Excise Duties

Question 18 of 20

Reduction in income tax rates was intended to:

Increase tax evasion Encourage savings and voluntary disclosure Reduce exports Reduce employment

Question 19 of 20

GST stands for:

Goods and Services Tax General Sales Tax Government Service Tax Goods Supply Tax

Question 20 of 20

GST promotes:

Many taxes One nation, one tax, one market Import restrictions Trade barriers

Practice 20 important MCQs from the NCERT chapter Liberalisation, Privatisation and Globalisation: An Appraisal. These questions cover the 1991 Economic Reforms, LPG policies, WTO, Globalisation, Privatisation, Disinvestment, Trade Reforms, Financial Sector Reforms, and their impact on the Indian economy.

Focus Keyword

Liberalisation Privatisation Globalisation MCQs

20 Important MCQs on LPG Reforms in India | NCERT Economics Chapter

liberalisation-privatisation-globalisation-mcqs

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Prepare for CBSE Economics exams with 20 important MCQs on Liberalisation, Privatisation and Globalisation (LPG). Includes answers, explanations, WTO, 1991 reforms, disinvestment, and globalization topics.

FAQ

What does LPG stand for in Economics?

LPG stands for Liberalisation, Privatisation and Globalisation, the major economic reforms introduced in India in 1991.

Why were the 1991 economic reforms introduced?

The reforms were introduced to address a severe Balance of Payments (BoP) crisis and stabilize the Indian economy.

Which organizations assisted India during the 1991 crisis?

India received financial assistance from the International Monetary Fund (IMF) and the World Bank.

What is Liberalisation?

Liberalisation refers to reducing government controls and restrictions on economic activities to encourage private sector participation.

What is Privatisation?

Privatisation is the transfer of ownership or management of public sector enterprises to the private sector.

What is Globalisation?

Globalisation is the integration of a country’s economy with the global economy through trade, investment, technology, and information flows.

What is Disinvestment?

Disinvestment is the process by which the government sells a portion of its equity in public sector enterprises.

What is the role of WTO?

The World Trade Organization (WTO) promotes a rule-based international trading system and resolves trade disputes among member countries.

Which sector grew the fastest after economic reforms?

The services sector became the fastest-growing sector in the Indian economy after the reforms.

What are the criticisms of LPG reforms?

Critics argue that reforms have led to unequal growth, inadequate employment generation, agricultural distress, and regional disparities despite overall economic progress.

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