Impact of LPG Reforms MCQs
Impact of LPG Reforms – MCQs with Answers & Explanations
Class: CBSE Class 11
Subject: Economics
Section: Liberalisation, Privatisation & Globalisation
Topic: Impact of LPG Reforms
Board: CBSE Board Examinations
Subject: Economics
Section: Liberalisation, Privatisation & Globalisation
Topic: Impact of LPG Reforms
Board: CBSE Board Examinations
These Multiple Choice Questions (MCQs) are designed strictly as per the NCERT syllabus, making them ideal for CBSE Class 11 Board Examination preparation. Each question includes detailed explanations for clear conceptual understanding.
1. LPG reforms were introduced in:
Answer: B
They were initiated to solve economic crisis.
They were initiated to solve economic crisis.
2. Liberalisation led to:
Answer: B
Industrial licensing reduced.
Industrial licensing reduced.
3. Privatisation increased role of:
Answer: B
Ownership shifted to private firms.
Ownership shifted to private firms.
4. Globalisation promotes:
Answer: A
Linked India to world markets.
Linked India to world markets.
5. Foreign investment after reforms:
Answer: B
FDI inflows rose significantly.
FDI inflows rose significantly.
6. Competition in markets:
Answer: A
Due to entry of private & foreign firms.
Due to entry of private & foreign firms.
7. Consumers benefited through:
Answer: A
Variety & quality improved.
Variety & quality improved.
8. Service sector growth was:
Answer: A
IT & BPO sectors expanded.
IT & BPO sectors expanded.
9. Export performance:
Answer: A
Trade openness boosted exports.
Trade openness boosted exports.
10. Forex reserves:
Answer: A
Stronger BoP position achieved.
Stronger BoP position achieved.
11. Industrial efficiency:
Answer: A
Competition forced innovation.
Competition forced innovation.
12. Public sector role:
Answer: A
Private participation rose.
Private participation rose.
13. Disinvestment resulted in:
Answer: A
Sale of PSU shares generated funds.
Sale of PSU shares generated funds.
14. Technology inflow:
Answer: A
FDI brought modern technology.
FDI brought modern technology.
15. Critics argue reforms caused:
Answer: A
Income disparities widened.
Income disparities widened.
16. Employment impact:
Answer: A
New jobs but layoffs too.
New jobs but layoffs too.
17. Small scale industries faced:
Answer: A
MNC competition challenged them.
MNC competition challenged them.
18. Poverty impact:
Answer: A
Growth helped poverty decline.
Growth helped poverty decline.
19. Market orientation:
Answer: A
Shift toward free‑market economy.
Shift toward free‑market economy.
20. Overall impact of LPG:
Answer: A
Modernised Indian economy.
Modernised Indian economy.
