Table of Contents
Class 11 Economics Chapter 3 – Liberalisation, Privatisation and Globalisation: An Appraisal Important Questions
These Liberalisation, Privatisation and Globalisation Important Questions cover the most important MCQs, one-word questions, assertion and reason questions and descriptive questions from NCERT Class 11 Economics Chapter 3. The questions are prepared from NCERT concepts and important exam-oriented topics for quick revision and practice.
This page is useful for UPSC, SSC, PSC, Railway, CUET and Class 11 Economics preparation, helping students revise important concepts related to economic reforms, LPG policies, globalisation, privatisation, liberalisation and Indian economic development after 1991.
Multiple Choice Questions (MCQs)
These MCQs from Liberalisation, Privatisation and Globalisation are designed for quick objective revision and competitive exam preparation. The questions cover important economic reforms, industrial policies, foreign trade and global integration discussed in the NCERT chapter.
### MCQ 1
Economic reforms in India were introduced in:
Answer: C. 1991
Page Reference: Page 31
### MCQ 2
The LPG reforms stand for:
Answer: A. Liberalisation, Privatisation and Globalisation
Page Reference: Page 31
### MCQ 3
Liberalisation mainly refers to:
Answer: A. Reduction of government controls and restrictions
Page Reference: Page 32
### MCQ 4
Privatisation means:
Answer: B. Greater role of private sector
Page Reference: Page 34
### MCQ 5
Globalisation refers to:
Answer: A. Integration of world economies
Page Reference: Page 35
### MCQ 6
Which institution provided financial assistance to India during economic crisis of 1991?
Answer: B. IMF and World Bank
Page Reference: Page 31
### MCQ 7
The main reason for economic reforms in 1991 was:
Answer: B. Balance of payments crisis
Page Reference: Page 31
### MCQ 8
Industrial licensing was largely abolished under:
Answer: A. Liberalisation
Page Reference: Page 32
### MCQ 9
Disinvestment means:
Answer: B. Selling shares of public sector enterprises
Page Reference: Page 34
### MCQ 10
Foreign Direct Investment (FDI) increased after:
Answer: A. Economic reforms
Page Reference: Page 35
### MCQ 11
Which organisation replaced GATT in 1995?
Answer: C. WTO
Page Reference: Page 36
### MCQ 12
Globalisation promotes:
Answer: D. All of these
Page Reference: Page 35
### MCQ 13
The New Economic Policy aimed at:
Answer: B. Economic reforms and market orientation
Page Reference: Page 31–32
### MCQ 14
Which among the following benefited from liberalisation?
Answer: D. All of these
Page Reference: Page 32–35
### MCQ 15
One criticism of globalisation is:
Answer: D. All of these
Page Reference: Page 38
### MCQ 16
Privatisation aims to improve:
Answer: A. Efficiency and productivity
Page Reference: Page 34
### MCQ 17
Economic reforms encouraged competition by:
Answer: A. Reducing restrictions on industries
Page Reference: Page 32
### MCQ 18
WTO mainly deals with:
Answer: A. International trade rules
Page Reference: Page 36
### MCQ 19
Which sector saw major growth after reforms?
Answer: A. Service sector
Page Reference: Page 37
### MCQ 20
Economic reforms in India promoted:
Answer: D. All of these
Page Reference: Page 31–37
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NCERT Class 11 Economics Chapter 5 Rural Development Important Questions and Answers
NCERT Class 11 Economics Chapter 4 Human Capital Formation in India Important Questions and MCQs
NCERT Class 11 Economics Chapter 2 Indian Economy 1950–1990 Important Questions with Answers
One-Word / Very Short Answer Questions
These one-word and factual questions help students quickly revise important economic reform concepts, global institutions and liberalisation policies from the chapter. The section is especially useful for UPSC, SSC, PSC, Railway, CUET and other objective examinations.
-
In which year were economic reforms introduced in India?
Answer: 1991Page Reference: Page 31
-
What does LPG stand for?
Answer: Liberalisation, Privatisation and GlobalisationPage Reference: Page 31
-
Which crisis led to economic reforms in India?
Answer: Balance of payments crisisPage Reference: Page 31
-
Which policy reduced government controls on industries?
Answer: LiberalisationPage Reference: Page 32
-
What does privatisation mean?
Answer: Greater role of private sectorPage Reference: Page 34
-
Which process integrates world economies?
Answer: GlobalisationPage Reference: Page 35
-
Which institution replaced GATT?
Answer: WTOPage Reference: Page 36
-
What does FDI stand for?
Answer: Foreign Direct InvestmentPage Reference: Page 35
-
Which organisation regulates international trade?
Answer: WTOPage Reference: Page 36
-
Which sector expanded rapidly after reforms?
Answer: Service sectorPage Reference: Page 37
-
Which process involves selling shares of public enterprises?
Answer: DisinvestmentPage Reference: Page 34
-
Which institutions assisted India during 1991 crisis?
Answer: IMF and World BankPage Reference: Page 31
-
Which policy abolished most industrial licensing?
Answer: LiberalisationPage Reference: Page 32
-
Which economic policy encouraged market orientation?
Answer: New Economic PolicyPage Reference: Page 31
-
Which reform increased foreign investment in India?
Answer: GlobalisationPage Reference: Page 35
Assertion and Reason Questions
These assertion and reason questions from Liberalisation, Privatisation and Globalisation help students develop conceptual clarity and analytical understanding of economic reforms, global integration and market-oriented policies. They are highly useful for board exams and competitive examinations.
Question 1
Assertion (A): India introduced economic reforms in 1991.
Reason (R): India faced severe balance of payments crisis.
Options:
A. Both A and R are true and R is the correct explanation
B. Both A and R are true but R is not the correct explanation
C. A is true but R is false
D. A is false but R is true
Correct Option: A
Page Reference: Page 31
Question 2
Assertion (A): Liberalisation reduced government restrictions on industries.
Reason (R): Government wanted to encourage competition and efficiency.
Options:
A. Both A and R are true and R is the correct explanation
B. Both A and R are true but R is not the correct explanation
C. A is true but R is false
D. A is false but R is true
Correct Option: A
Page Reference: Page 32
Question 3
Assertion (A): Privatisation increased role of private sector in economy.
Reason (R): Private enterprises were considered more efficient in many sectors.
Options:
A. Both A and R are true and R is the correct explanation
B. Both A and R are true but R is not the correct explanation
C. A is true but R is false
D. A is false but R is true
Correct Option: A
Page Reference: Page 34
Question 4
Assertion (A): Globalisation increased integration of Indian economy with world economy.
Reason (R): Trade, capital and technology flows increased after reforms.
Options:
A. Both A and R are true and R is the correct explanation
B. Both A and R are true but R is not the correct explanation
C. A is true but R is false
D. A is false but R is true
Correct Option: A
Page Reference: Page 35
Question 5
Assertion (A): WTO regulates international trade rules.
Reason (R): WTO replaced GATT in 1995.
Options:
A. Both A and R are true and R is the correct explanation
B. Both A and R are true but R is not the correct explanation
C. A is true but R is false
D. A is false but R is true
Correct Option: A
Page Reference: Page 36
Question 6
Assertion (A): Disinvestment is related to public sector reforms.
Reason (R): Government sold shares of public enterprises to private investors.
Options:
A. Both A and R are true and R is the correct explanation
B. Both A and R are true but R is not the correct explanation
C. A is true but R is false
D. A is false but R is true
Correct Option: A
Page Reference: Page 34
Question 7
Assertion (A): Economic reforms promoted foreign investment in India.
Reason (R): Restrictions on foreign companies were reduced after reforms.
Options:
A. Both A and R are true and R is the correct explanation
B. Both A and R are true but R is not the correct explanation
C. A is true but R is false
D. A is false but R is true
Correct Option: A
Page Reference: Page 35
Question 8
Assertion (A): Liberalisation benefited consumers in India.
Reason (R): Consumers got wider choice of goods and services after reforms.
Options:
A. Both A and R are true and R is the correct explanation
B. Both A and R are true but R is not the correct explanation
C. A is true but R is false
D. A is false but R is true
Correct Option: A
Page Reference: Page 37
Question 9
Assertion (A): Globalisation created challenges for small producers.
Reason (R): Small producers faced competition from multinational companies.
Options:
A. Both A and R are true and R is the correct explanation
B. Both A and R are true but R is not the correct explanation
C. A is true but R is false
D. A is false but R is true
Correct Option: A
Page Reference: Page 38
Question 10
Assertion (A): Service sector expanded rapidly after economic reforms.
Reason (R): Reforms encouraged growth in communication, banking and IT sectors.
Options:
A. Both A and R are true and R is the correct explanation
B. Both A and R are true but R is not the correct explanation
C. A is true but R is false
D. A is false but R is true
Correct Option: A
Page Reference: Page 37
Important Exam-Based Concept Questions
These important descriptive and analytical questions from Liberalisation, Privatisation and Globalisation are useful for board examinations and competitive exams. The questions focus on conceptual understanding, economic reforms, trade liberalisation and global economic integration.
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1. Explain the background and causes of economic reforms in India in 1991.
Page Reference: Page 31 -
2. Discuss the meaning and features of Liberalisation.
Page Reference: Page 32 -
3. Explain the objectives and impact of Privatisation.
Page Reference: Page 34 -
4. Discuss the meaning and features of Globalisation.
Page Reference: Page 35 -
5. Explain the role of IMF and World Bank during Indian economic crisis.
Page Reference: Page 31 -
6. Discuss the major features of New Economic Policy 1991.
Page Reference: Page 31–35 -
7. Explain how liberalisation affected Indian industries.
Page Reference: Page 32–33 -
8. Discuss the impact of privatisation on public sector enterprises.
Page Reference: Page 34 -
9. Explain the role of WTO in global trade.
Page Reference: Page 36 -
10. Discuss the impact of globalisation on Indian economy.
Page Reference: Page 35–38 -
11. Explain the meaning and significance of disinvestment.
Page Reference: Page 34 -
12. Discuss the advantages of liberalisation for consumers and producers.
Page Reference: Page 37 -
13. Explain the criticisms and challenges of globalisation.
Page Reference: Page 38 -
14. Discuss the growth of service sector after economic reforms.
Page Reference: Page 37 -
15. Explain the achievements and limitations of LPG reforms in India.
Page Reference: Page 31–38
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