LPG Reforms 1991 MCQs
LPG Reforms 1991 – MCQs with Answers & Explanations
Class: CBSE Class 11
Subject: Economics
Section: Liberalisation, Privatisation & Globalisation
Topic: LPG Reforms 1991
Board: CBSE Board Examinations
Subject: Economics
Section: Liberalisation, Privatisation & Globalisation
Topic: LPG Reforms 1991
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 stands for:
Answer: A
These reforms opened India’s economy in 1991.
These reforms opened India’s economy in 1991.
2. LPG reforms were introduced in:
Answer: B
Initiated to solve economic crisis.
Initiated to solve economic crisis.
3. Economic crisis involved:
Answer: A
India faced severe balance of payments crisis.
India faced severe balance of payments crisis.
4. Liberalisation means:
Answer: B
Reduced government controls.
Reduced government controls.
5. Privatisation refers to:
Answer: B
Transfer of ownership/management.
Transfer of ownership/management.
6. Globalisation means:
Answer: B
Free flow of trade, capital & technology.
Free flow of trade, capital & technology.
7. License Raj was:
Answer: B
Industrial licensing removed.
Industrial licensing removed.
8. Devaluation means:
Answer: B
Made exports competitive.
Made exports competitive.
9. FDI stands for:
Answer: A
Foreign capital inflow.
Foreign capital inflow.
10. Trade liberalisation involved:
Answer: A
Encouraged global trade.
Encouraged global trade.
11. MRTP restrictions were:
Answer: B
Promoted private expansion.
Promoted private expansion.
12. Public sector role:
Answer: B
Private sector participation rose.
Private sector participation rose.
13. Disinvestment means:
Answer: B
PSU shares sold to private investors.
PSU shares sold to private investors.
14. WTO membership boosted:
Answer: A
Integrated India globally.
Integrated India globally.
15. Competition increased due to:
Answer: A
Market forces strengthened.
Market forces strengthened.
16. Consumers benefited via:
Answer: A
Variety & quality improved.
Variety & quality improved.
17. Service sector growth:
Answer: B
IT & finance sectors boomed.
IT & finance sectors boomed.
18. Critics argue LPG caused:
Answer: A
Regional & income gaps widened.
Regional & income gaps widened.
19. Export growth after reforms:
Answer: A
Trade openness boosted exports.
Trade openness boosted exports.
20. Overall LPG impact:
Answer: A
Shifted India to market‑oriented economy.
Shifted India to market‑oriented economy.
