This quiz works best with JavaScript enabled. Home > Cbse > Class 11 > Commerce > Economics Indian Economic Development > Class 11 Economics (Indian Economic Development) Chapter 3 Liberalisation, Privatisation And Globalisation An Appraisal – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Economics (Indian Economic Development) Chapter 3 Liberalisation, Privatisation And Globalisation An Appraisal Quiz 1 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... are playing a major role in the globalisation process. A) Government. B) MNCs. C) PSU's. D) None of the above. Show Answer Correct Answer: B) MNCs. 2. Which factor might attract a multinational corporation to a country? A) Good tourist attractions. B) Cheap raw materials. C) High average monthly wage. D) None of the above. Show Answer Correct Answer: B) Cheap raw materials. 3. Increasing interdependence of nations and peoples across the globe. A) Globalization. B) Infrastructure. C) Specialization. D) Interdependence. Show Answer Correct Answer: A) Globalization. 4. Why there was a need for economic reforms in India? A) Due to fiscal deficit. B) Due to adverse BOP. C) Rise in prices. D) All of the above. Show Answer Correct Answer: D) All of the above. 5. W.T.O. was started at the initiative of which one of the following group of countries? A) Poor countries. B) Developed countries. C) Developing countries. D) All of the above. Show Answer Correct Answer: B) Developed countries. 6. Liberalisation refers to A) Freeing the economy from direct control. B) Putting an end to various restrictions. C) Opening up the economy. D) All the above. Show Answer Correct Answer: D) All the above. 7. The World Trade Organisation was established in which of the following years? A) 1795. B) 1995. C) 1885. D) 1945. Show Answer Correct Answer: B) 1995. 8. What kind of countries create the most trade? A) Countries linked to the USA. B) Poor countries. C) Countries in the EU. D) Rich countries. Show Answer Correct Answer: D) Rich countries. 9. Liberalisation of the economy under the new economic policy changed the role of RBI inthe economy: A) From a 'regulator' to 'facilitator' of the financial sector. B) From a 'controller' to 'manager' of the government debt. C) Both (a) and (b). D) None of these. Show Answer Correct Answer: A) From a 'regulator' to 'facilitator' of the financial sector. 10. Which of the following is NOT a feature of the World Bank A) Promotes economic development. B) Is broken up between the IBRD and IDA. C) Oversees international monetary systems. D) Promote economic development. Show Answer Correct Answer: C) Oversees international monetary systems. 11. Economic globalisation is related to ..... A) Buying, selling, businesses, taxes. B) Presidents and territories. C) The United Nations. D) None of the above. Show Answer Correct Answer: A) Buying, selling, businesses, taxes. 12. ..... refers to disposal of equity of public sector units in the market. A) Globalisation. B) Privatisation. C) Disinvestment. D) Liberalisation. Show Answer Correct Answer: C) Disinvestment. 13. Who is the head of the World Trade Organisation A) Ministerial conference. B) Director general. C) Deputy director general. D) None of these. Show Answer Correct Answer: B) Director general. 14. Economic liberalization of 1991 was a bold decision by the Prime Minister ..... and his Finance Minister ..... A) Narendra Modi, Nirmala Seetharaman. B) Jawaharlal Nehru, Liaquat Ali Khan. C) Indira Gandhi, Yashwantrao B. Chavan. D) Narasimha Rao, Manmohan Singh. Show Answer Correct Answer: D) Narasimha Rao, Manmohan Singh. 15. Globalisation will result in A) More competition among producers. B) Less competition among producers. C) No change in competition among producers. D) None of the above. Show Answer Correct Answer: A) More competition among producers. 16. Which were the 2 Major issue P.V Narasimha Rao initiated? A) Ram janmabhumi and Barib Mosque. B) Ram janambhumi and Babri mosque. C) Ram janmabhumi and Babri mosque. D) None of the above. Show Answer Correct Answer: C) Ram janmabhumi and Babri mosque. 17. Due to containerisation, how many container movements take place each year on average? A) 500 million. B) 300 million. C) 200 million. D) 100 million. Show Answer Correct Answer: C) 200 million. 18. Which of the following is not a characteristic of SEZs? A) They do not have to pay taxes. B) Government has alloweds flexibility in labour laws. C) They have world class facilities. D) Government allows flexibility of labour laws. Show Answer Correct Answer: A) They do not have to pay taxes. 19. What are some positives of globalization? A) Cheap sneakers and clothes. B) Cheap electronics. C) Information is easy to access and it travels quickly (internet and social media). D) All of the answers are correct. Show Answer Correct Answer: D) All of the answers are correct. 20. The food at the Turkish restaurant is really ..... it tastes just that same as food you would eat in Turkey A) Significant. B) Expensive. C) Authentic. D) Disappointing. Show Answer Correct Answer: C) Authentic. 21. Privatisation means: A) Allowing the private sector to set up industries which were previously reserved for the publicsector. B) Existing enterprises of the public sector are either wholly or partially sold to private sector. C) Both (a) and (b). D) None of these. Show Answer Correct Answer: C) Both (a) and (b). 22. Which of the following organisations aims to regulate trade among countries? A) EU. B) GATT. C) WTO. D) IMF. Show Answer Correct Answer: C) WTO. 23. TRUE OR FALSE:Tariffs work by increasing the price of exported goods and protects local products within the same market. A) TRUE. B) FALSE. C) I DO NOT KNOW. D) None of the above. Show Answer Correct Answer: A) TRUE. 24. Reasons of implementing liberalisation ..... A) Excess of expenditure & consumption over revenue resulting in heavy government borrowings. B) Mis management of firms & economy. C) Burden of national debt. D) Mounting losses of public sector enterprises. E) All of the above. Show Answer Correct Answer: E) All of the above. 25. Out of the following, what is an example of outsourcing? A) Call Centres. B) Book Transcription. C) Clinical Advice. D) All of the Above. Show Answer Correct Answer: D) All of the Above. 26. Indian government was introduced ..... in 1991 A) Globalisation. B) World Trade Organisation. C) New Economic Policy. D) None. Show Answer Correct Answer: C) New Economic Policy. 27. A large company that owns or controls production in more than one nation is nation is called a- A) Self Help Group. B) Global Companies. C) Multinational Corporation. D) Non Government Organisation. Show Answer Correct Answer: C) Multinational Corporation. 28. Multinational corporation in India A) 1947. B) Enforce international trade. C) 1986. D) Minimise cost of production. E) Infosys. Show Answer Correct Answer: E) Infosys. 29. Which of the following argument is against the privatisation? A) It is the framework of public sector is responsible for lower production and lower profit. B) Indian government can not avoid foreign competition given its committment to WTO. C) Private sector may not like invest money in trade, real estate and other services. D) The private sector can not uphold social justice and public welfare. Show Answer Correct Answer: C) Private sector may not like invest money in trade, real estate and other services. 30. What is driving the move toward greater globalization? A) Rising labor costs. B) Increasing government intervention. C) Technological change. D) Declining trade and investment barriers. Show Answer Correct Answer: D) Declining trade and investment barriers. 31. Which of the following arguments are not in the favour of privatisation ..... A) Improve the efficiency of public sector units. B) Increases government financial banking. C) Help in reviving sick units. D) Reduce political interferences. Show Answer Correct Answer: B) Increases government financial banking. 32. HEAD OFFICE OF WTO IS LOCATED IN A) DELHI. B) NEW YORK. C) BERLIN. D) GENEVA. Show Answer Correct Answer: D) GENEVA. 33. What are some negatives of globalization? A) Workers are exploited in sweatshops. B) Pollution and deforestation. C) Low wages for factory workers in Asia and Africa. D) All of the answers are correct. Show Answer Correct Answer: D) All of the answers are correct. 34. When the economy of two countries depend on each other, it's called: A) Multinational cooperation. B) Economic interdependence. C) Isolationism. D) Outsourcing. Show Answer Correct Answer: B) Economic interdependence. 35. How many countries does the AT Kearney index measure? A) 150. B) 54. C) 84. D) 64. Show Answer Correct Answer: D) 64. 36. Child labor can be an effect of globalization. A) TRUE. B) FALSE. C) I DO NOT KNOW. D) None of the above. Show Answer Correct Answer: A) TRUE. 37. In 2015 the UK attracted significant FDI, making it the ..... largest recipient of FDI that year at a global scale. A) 4th. B) 2nd. C) 12th. D) 9th. Show Answer Correct Answer: A) 4th. 38. The growth of trading blocs such as the EU and NAFTA can be categorised as what? A) Foreign direct investment. B) Political globalisation. C) Free trade economics. D) Economic globalisation. Show Answer Correct Answer: B) Political globalisation. 39. What was one of the results of liberalisation in India? A) High growth rate. B) Increased inflation. C) Weak rupee. D) Decreased competition. Show Answer Correct Answer: A) High growth rate. 40. Improvements in transportation-larger cargo ships mean that the cost of transporting goods between countries has decreased. Economies of scale mean the cost per item can reduce when operating on a larger scale. Transport improvements also mean that goods and people can travel more quickly. A) Cause. B) Positive Impact. C) Negative Impact. D) None of the above. Show Answer Correct Answer: C) Negative Impact. 41. When a country's resources are used up, they may need to rely on other countries to supply them. A) Refused. B) Separated. C) Excluded. D) Exhausted. Show Answer Correct Answer: D) Exhausted. 42. Some supporters of global economic freedom believe that all trade barriers should be taken away. A) Excluded. B) Removed. C) Exhausted. D) Refused. Show Answer Correct Answer: B) Removed. 43. Why would a company go overseas? A) More Planning. B) Potential limit. C) For fun. D) For more profit. Show Answer Correct Answer: D) For more profit. 44. The amount of migrant labour is expected to go up. A) Study. B) Confuse. C) Increase. D) Continue. Show Answer Correct Answer: C) Increase. 45. Which of the following is NOT a transnational corporation (TNC)? A) Ford. B) Shell. C) Local newsagent. D) None of the above. Show Answer Correct Answer: C) Local newsagent. 46. Who granted the English "golden fireman" in 1632 A) Jahangir. B) Sultan of Golconda. C) Akbar. D) Aurangzeb. Show Answer Correct Answer: B) Sultan of Golconda. 47. What are the reforms taken during liberalisation? A) Industrial sector. B) Financial sector. C) Fiscal sector. D) Trade sector. E) All of these. Show Answer Correct Answer: E) All of these. 48. What was the capital employed in the top 500 private sector companies in 1992-93? A) Rs. 1, 00, 000 crores. B) Rs. 1, 39, 806 crores. C) Rs. 3, 00, 000 crores. D) Rs. 2, 34, 751 crores. Show Answer Correct Answer: B) Rs. 1, 39, 806 crores. 49. Which of the following is an element of financial sector of the economy? A) Banking and non-banking financial institutions. B) Stock exchange market. C) Foreign exchange market. D) All of these. Show Answer Correct Answer: D) All of these. 50. Improvements in communications-the internet and mobile technology have allowed greater communication between people in different countries A) Cause. B) Positive Impact. C) Negative Impact. D) None of the above. Show Answer Correct Answer: A) Cause. 51. Globalization goes hand in hand with A) Trade Liberalisation. B) Global trade. C) Trading blocs. D) Bilateral agreements. Show Answer Correct Answer: A) Trade Liberalisation. 52. Which of the following is not an objective of liberalisation ..... A) To boost competition between domestic business. B) Improvement of technology and foreign capital. C) Women education. D) Reducing burden of country. E) Unlock economic potential of tge country by encouraging pvt. Sector. Show Answer Correct Answer: C) Women education. 53. Those who benefit most are: A) The poorer countries. B) The wealthy countries. C) Caribbean countries. D) All benefit alike. Show Answer Correct Answer: B) The wealthy countries. 54. Which organization provides a mechanism for dispute resolution and the enforcement of trade laws? A) The World Bank. B) The IMF. C) The UN. D) The WTO. Show Answer Correct Answer: D) The WTO. 55. What is the 'brain drain'? A) The migration of skilled workers to less developed countries. B) The migration of unskilled workers to less developed countries. C) The migration of skilled workers to more developed countries. D) The migration of unskilled workers to more developed countries. Show Answer Correct Answer: C) The migration of skilled workers to more developed countries. 56. Reduction in the value of domestic currency by the Government is called ..... A) Devaluation. B) Demonetisation. C) Depreciation. D) Revaluation. Show Answer Correct Answer: A) Devaluation. 57. What is one of the impacts of GST on compliance? A) Increased number of compliances. B) No change in compliance requirements. C) Tremendously reduced number of compliances. D) More complex compliance procedures. Show Answer Correct Answer: C) Tremendously reduced number of compliances. 58. Agreement between two countries that agree to loosen trade restrictions between the two. A) Multilateral Agreement. B) Bilateral Agreement. C) Unilateral Agreement. D) Free Trade Agreement. Show Answer Correct Answer: B) Bilateral Agreement. 59. The programme of economic reforms in India was started on ..... A) 23th July 1992. B) 24th July 1991. C) 21th July 1991. D) 26 th July 1990. Show Answer Correct Answer: B) 24th July 1991. 60. What does the word 'trade' mean? A) Business. B) Not selling. C) The selling of something. D) Buying. Show Answer Correct Answer: C) The selling of something. 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