Liberalisation Policy MCQs
Liberalisation Policy – MCQs with Answers & Explanations
Class: CBSE Class 11
Subject: Economics
Section: Liberalisation, Privatisation & Globalisation
Topic: Liberalisation Policy
Board: CBSE Board Examinations
Subject: Economics
Section: Liberalisation, Privatisation & Globalisation
Topic: Liberalisation Policy
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. Liberalisation refers to:
Answer: B
Liberalisation reduces regulations to promote private sector growth.
Liberalisation reduces regulations to promote private sector growth.
2. Liberalisation policy in India began in:
Answer: B
Introduced as part of LPG reforms.
Introduced as part of LPG reforms.
3. Industrial licensing was:
Answer: B
Entry barriers removed.
Entry barriers removed.
4. Liberalisation promotes:
Answer: A
Market competition improves efficiency.
Market competition improves efficiency.
5. MRTP restrictions were:
Answer: B
Allowed firms to expand.
Allowed firms to expand.
6. Foreign investment was:
Answer: B
FDI inflows increased.
FDI inflows increased.
7. Trade liberalisation reduced:
Answer: A
Lower duties encouraged trade.
Lower duties encouraged trade.
8. Devaluation aimed to:
Answer: A
Made exports cheaper globally.
Made exports cheaper globally.
9. Public sector role became:
Answer: B
Private sector gained importance.
Private sector gained importance.
10. Disinvestment refers to:
Answer: B
PSU stake sold to private players.
PSU stake sold to private players.
11. Liberalisation improved:
Answer: A
Competition drives productivity.
Competition drives productivity.
12. Consumers benefited through:
Answer: A
Quality & choice increased.
Quality & choice increased.
13. Service sector after liberalisation:
Answer: B
IT & finance sectors grew rapidly.
IT & finance sectors grew rapidly.
14. Competition led to:
Answer: A
Firms improved technology.
Firms improved technology.
15. Critics argue liberalisation caused:
Answer: A
Income gaps widened.
Income gaps widened.
16. Global competition affected:
Answer: A
Forced efficiency improvements.
Forced efficiency improvements.
17. Export growth after liberalisation:
Answer: A
Trade openness boosted exports.
Trade openness boosted exports.
18. Forex reserves post reforms:
Answer: A
Stronger BoP position.
Stronger BoP position.
19. Market orientation became:
Answer: A
Shift toward free‑market economy.
Shift toward free‑market economy.
20. Overall liberalisation impact:
Answer: A
Boosted GDP & integration.
Boosted GDP & integration.
