Privatisation MCQs Class 11
Privatisation – MCQs with Answers & Explanations
Class: CBSE Class 11
Subject: Economics
Section: Liberalisation, Privatisation & Globalisation
Topic: Privatisation
Board: CBSE Board Examinations
Subject: Economics
Section: Liberalisation, Privatisation & Globalisation
Topic: Privatisation
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. Privatisation refers to:
Answer: B
Ownership or management shifts from public to private sector.
Ownership or management shifts from public to private sector.
2. Privatisation was part of:
Answer: A
Introduced in 1991 reforms.
Introduced in 1991 reforms.
3. Disinvestment means:
Answer: B
PSU shares sold to private investors.
PSU shares sold to private investors.
4. Objective of privatisation:
Answer: A
Private firms operate more efficiently.
Private firms operate more efficiently.
5. Public sector enterprises are called:
Answer: A
Public Sector Undertakings.
Public Sector Undertakings.
6. Privatisation encourages:
Answer: A
Market competition rises.
Market competition rises.
7. Loss‑making PSUs were:
Answer: B
Sold to reduce fiscal burden.
Sold to reduce fiscal burden.
8. Privatisation reduces:
Answer: A
Less financial pressure on government.
Less financial pressure on government.
9. Management control shifts to:
Answer: B
Private decision‑making improves operations.
Private decision‑making improves operations.
10. Privatisation may lead to:
Answer: A
Efficiency restructuring can reduce workforce.
Efficiency restructuring can reduce workforce.
11. Private firms aim at:
Answer: A
Profit maximisation motive.
Profit maximisation motive.
12. Privatisation improves:
Answer: A
Better technology & management.
Better technology & management.
13. Example of disinvestment method:
Answer: A
Govt sells equity stake.
Govt sells equity stake.
14. Fiscal deficit reduces due to:
Answer: A
Govt earns funds.
Govt earns funds.
15. Consumers benefit via:
Answer: A
Competition improves quality.
Competition improves quality.
16. Critics argue privatisation causes:
Answer: A
Profit motive may ignore welfare.
Profit motive may ignore welfare.
17. Strategic sectors remain:
Answer: A
Defence, railways etc.
Defence, railways etc.
18. Market orientation becomes:
Answer: A
Driven by private enterprise.
Driven by private enterprise.
19. Privatisation supports:
Answer: A
Both reduce state control.
Both reduce state control.
20. Overall privatisation outcome:
Answer: A
Boosts productivity and investment.
Boosts productivity and investment.
