New Economic Policy MCQs
New Economic Policy – MCQs with Answers & Explanations
Class: CBSE Class 11
Subject: Economics
Section: Liberalisation, Privatisation & Globalisation
Topic: New Economic Policy (1991)
Board: CBSE Board Examinations
Subject: Economics
Section: Liberalisation, Privatisation & Globalisation
Topic: New Economic Policy (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. New Economic Policy was introduced in:
Answer: B
Introduced to overcome economic crisis.
Introduced to overcome economic crisis.
2. NEP is based on:
Answer: A
Liberalisation, Privatisation, Globalisation.
Liberalisation, Privatisation, Globalisation.
3. Liberalisation under NEP means:
Answer: B
Reduced government regulation.
Reduced government regulation.
4. Privatisation involves:
Answer: B
Transfer of ownership/management.
Transfer of ownership/management.
5. Globalisation refers to:
Answer: B
Linking domestic economy globally.
Linking domestic economy globally.
6. License Raj was:
Answer: B
Industrial licensing eased.
Industrial licensing eased.
7. Devaluation aimed to:
Answer: A
Made exports competitive.
Made exports competitive.
8. FDI inflow means:
Answer: A
Capital from abroad.
Capital from abroad.
9. Trade liberalisation reduced:
Answer: A
Encouraged imports & exports.
Encouraged imports & exports.
10. Public sector role became:
Answer: B
Private sector gained importance.
Private sector gained importance.
11. Disinvestment means:
Answer: B
PSU stake sale.
PSU stake sale.
12. Competition after NEP:
Answer: A
Entry of private & foreign firms.
Entry of private & foreign firms.
13. Consumers benefited via:
Answer: A
More goods & better quality.
More goods & better quality.
14. Service sector growth:
Answer: A
IT & finance expanded.
IT & finance expanded.
15. Forex reserves:
Answer: A
BoP strengthened.
BoP strengthened.
16. Technology inflow:
Answer: A
FDI brought innovation.
FDI brought innovation.
17. Critics argue NEP caused:
Answer: A
Regional & income gaps widened.
Regional & income gaps widened.
18. Employment impact:
Answer: A
New jobs but layoffs too.
New jobs but layoffs too.
19. Market orientation:
Answer: A
Shift toward free market.
Shift toward free market.
20. Overall NEP outcome:
Answer: A
Modernised Indian economy.
Modernised Indian economy.
