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 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Economics (Indian Economic Development) Chapter 3 Liberalisation, Privatisation And Globalisation An Appraisal Quiz 2 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In the context of Indian experience, controls were imposed by the government with a view to: A) Checking the growth of private monopolies. B) Minimising the hold of large industrial houses on the financial resources of the country. C) Both (a) and (b). D) None of these. Show Answer Correct Answer: C) Both (a) and (b). 2. Globalisation is good because of an ..... in standard of living, but is bad because there is a ..... in local cultures and traditions A) Decrease / decrease. B) Decrease / increase. C) Increase / decrease. D) Increase / increase. Show Answer Correct Answer: C) Increase / decrease. 3. Managing Balance of Payments during 1991 New Economic Policy was classified as:- A) Stablisation measures. B) Development Measures. C) Structural Measures. D) Reformational Measures. Show Answer Correct Answer: A) Stablisation measures. 4. Industrial sector reforms under the New Economic Policy (NEP) comprised which of the following? A) Abolition of industrial licencing. B) De-reservation of production areas. C) Contraction of public sector. D) All of these. Show Answer Correct Answer: D) All of these. 5. ..... is working with farmers by corporate firms & sharing the rewards . A) Government farming. B) Contract farming. C) Private farming. D) Corporate farming. Show Answer Correct Answer: D) Corporate farming. 6. Tariffs restrict trade through A) Taxation. B) Domestic trading. C) International law. D) Quota systems. Show Answer Correct Answer: A) Taxation. 7. Which one of the following is a characteristic of globalisation A) Low levels of labour migration. B) The development of global brands. C) A decrease in foreign direct investment. D) A reduction in out-sourcing and off-shoring of production. Show Answer Correct Answer: B) The development of global brands. 8. Is the spread of religion over human history an example of globalisation? A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 9. Which of these factors have influenced globalisation? A) High taxes and investment restrictions. B) Communication systems and the internet. C) Poor standard of living and unemployment. D) None of the above. Show Answer Correct Answer: B) Communication systems and the internet. 10. A free trade block is an agreement that allows A) An increase in tarrifs and quotas. B) Allows non-member states to trade freely. C) Allow goods and money to move freely between countries. D) None of the above. Show Answer Correct Answer: C) Allow goods and money to move freely between countries. 11. Which of the following is not a component of privatisation? A) Disinvestment in public sector enterprises. B) Purchase of industrial shares by the government. C) Contraction of public sector. D) Sale of public sector's share. Show Answer Correct Answer: B) Purchase of industrial shares by the government. 12. As with major technological advances, globalization harms society as a whole, while benefiting certain groups. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 13. Cultural globalisation is: A) Less popularity. B) People isolating in their houses. C) Spreading culture all around the world. D) None of the above. Show Answer Correct Answer: C) Spreading culture all around the world. 14. What necessity arose for businesses due to rapid changes in the environment? A) Stability in policies. B) Reduction in workforce. C) Necessity for change in policies. D) Increased government control. Show Answer Correct Answer: C) Necessity for change in policies. 15. What is globalisation? A) The process by which the world is becoming increasingly interconnected. B) The process by which the world is becoming less interconnected. C) The process by which the world is becoming more divided. D) None of the above. Show Answer Correct Answer: A) The process by which the world is becoming increasingly interconnected. 16. The policy of "Navaratnas" and "Mini Ratnas" is related to ..... A) Liberalisation. B) Privatisation. C) Globalisation. D) None of the Above. Show Answer Correct Answer: B) Privatisation. 17. The AT Kearney Index uses four different factors to produce its results. Political engagement, economic integration, personal contact and what ..... ? A) Environmental regulations. B) Technological connectivity. C) Social integration. D) Neo liberalism indices. Show Answer Correct Answer: B) Technological connectivity. 18. How many industries were reserved for the public sector after the reduction due to privatisation? A) 17. B) 3. C) 5. D) 8. Show Answer Correct Answer: D) 8. 19. Globalisation has led to improvement in living conditions of A) All the people. B) People in developed countries. C) Workers in developing countries. D) None of these. Show Answer Correct Answer: C) Workers in developing countries. 20. What are the implications of technological change for the globalization of production? A) Technological change has no effect on the globalization of production. B) Lower transportation costs make a geographically dispersed production system more economical. C) Advancements in communication have no impact on production globalization. D) Technological change leads to higher production costs. Show Answer Correct Answer: B) Lower transportation costs make a geographically dispersed production system more economical. 21. Neocolonialism is considered to be the A) Renewed independence of former colonies. B) A situation where former colonies become developed countries. C) Direct colonisation of a country by a more powerful one. D) Informal colonisation of a country via economic, social and cultural methods. Show Answer Correct Answer: D) Informal colonisation of a country via economic, social and cultural methods. 22. Some TNC's such as Starbucks and Amazon have sometimes channeled profits through subsidiary companies in lower tax regimes. What is this also known as? A) Tax evasion. B) Financial Optimisation. C) Offshoring. D) Transfer Pricing. Show Answer Correct Answer: D) Transfer Pricing. 23. Which of the following is a by-product of globalisation? A) Discriminatory immigration policies. B) Closed market space. C) Commodification of cultures. D) Increased importation costs. Show Answer Correct Answer: C) Commodification of cultures. 24. Progressive elimination of Government control over economic activities is known as ..... A) Globalisation. B) Privatisation. C) Liberalization. D) None of the above. Show Answer Correct Answer: C) Liberalization. 25. GST is a/an ..... tax A) Direct. B) Indirect. C) All the above. D) None of the above. Show Answer Correct Answer: B) Indirect. 26. As per the new industrial policy, 1991 at present, there are only ..... indusrties reserved for public sector . A) Five. B) Six. C) Four. D) Three. Show Answer Correct Answer: D) Three. 27. Special economic zones are areas within a country where A) Business and trade laws are different. B) Business and trade laws are the same. C) Businesses are restricted by government policy. D) None of the above. Show Answer Correct Answer: A) Business and trade laws are different. 28. Labour availability and skills-countries such as India have lower labour costs (about a third of that of the UK) and also high skill levels. Labour-intensive industries such as clothing can take advantage of cheaper labour costs and reduced legal restrictions in LEDCs. A) Cause. B) Positive Impact. C) Negative Impact. D) None of the above. Show Answer Correct Answer: C) Negative Impact. 29. The global shift refers to A) The movement of businesses into Asia. B) The movement of businesses into the UK. C) The movement of businesses into Vietnam. D) None of the above. Show Answer Correct Answer: A) The movement of businesses into Asia. 30. Name the act to regulate foreign investment in India. A) FEMA. B) COPRA. C) RTI. D) ICA. Show Answer Correct Answer: A) FEMA. 31. Which of the following is not a tax reform? A) Reduction in taxes. B) Simplification of tax process. C) Devaluation of Rupee. D) Reforms in Indirect taxes. Show Answer Correct Answer: C) Devaluation of Rupee. 32. External sector reforms under NEP included: A) Foreign exchange reforms. B) Foreign trade pol icy reforms. C) Both (a) and (b). D) None of these. Show Answer Correct Answer: C) Both (a) and (b). 33. Privatisation refers to ..... A) Transfer of assets from public to private. B) Transfer of assets from corporate to public. C) Transfer of assets from people to government. D) Transfer of assets from corporate to government. Show Answer Correct Answer: A) Transfer of assets from public to private. 34. Which of the following reforms were initiated under liberalisation by Govt A) Industrial sector reforms. B) Tax reforms. C) Financial sector reforms. D) All of these. Show Answer Correct Answer: D) All of these. 35. Mahindra & Mahindra an automobile company has a collaboration with which of the following MNC's A) BMW. B) Suzuki. C) Ford. D) Honda. Show Answer Correct Answer: C) Ford. 36. Greater employment opportunities for people especially in LEDCs in the manufacturing industries. Globalisation can provide jobs for poorer and indigenous people and help them to learn new skills. A) Cause. B) Positive Impact. C) Negative Impact. D) None of the above. Show Answer Correct Answer: B) Positive Impact. 37. 8th Uruguay round A) Enforce international trade. B) 1947. C) Infosys. D) 1986. Show Answer Correct Answer: D) 1986. 38. When was the New Economic Policy announced? A) July 1991. B) May 1989. C) June 1990. D) January 1992. Show Answer Correct Answer: A) July 1991. 39. A disadvantage of globalisation for manufacturers in the UK would include which one of the following A) Access to wider markets. B) The spread of technology could cause local unemployment. C) Difficult to find workers. D) Low-cost competition from overseas firms. Show Answer Correct Answer: D) Low-cost competition from overseas firms. 40. Foreign Investment Policy announced in A) June 1991. B) August 1991. C) July-August-1991. D) July 1991. Show Answer Correct Answer: C) July-August-1991. 41. Long Term Measures undertaken during 1991 New Economic Policy were called as:- A) Development Measures. B) Structural Measures. C) Reformational Measures. D) Stablisation measures. Show Answer Correct Answer: B) Structural Measures. 42. ICT is considered a facilitator of globalisation. What does 'ICT' mean in this context? A) Internet Computer Transaction. B) Internet Communication Transaction. C) Information and Computer Technology. D) Information and Communications Technologies. Show Answer Correct Answer: D) Information and Communications Technologies. 43. Complete privatisation A) 100% control to the buyer. B) Major stake to the buyer. C) Minor stake to the buyer. D) Both seller and buyer with 100% control. Show Answer Correct Answer: A) 100% control to the buyer. 44. How have consumer demands changed after government policy changes? A) Consumers are indifferent to product quality. B) Consumers are less informed. C) Consumers now demand higher quality goods. D) Consumers prefer lower prices over quality. Show Answer Correct Answer: C) Consumers now demand higher quality goods. 45. GATT's first round held in A) Tokyo. B) Geneva. C) Uruguay. D) Torquay. Show Answer Correct Answer: B) Geneva. 46. In 1986 deregulation of which major city led it to become a global financial hub A) New York City. B) Shanghai. C) London. D) None of the above. Show Answer Correct Answer: C) London. 47. The name of the French company that bought a stake in Southern Englands railway network is? A) Helios. B) Keolis. C) Meolis. D) None of the above. Show Answer Correct Answer: B) Keolis. 48. Availability of a greater variety of goods and services to the consumers. We can now buy a range of different imported products in countries across the world that were once not available e.g. you can buy cheddar cheese in Villa Market in Bangkok and fish sauce in Sainsbury's in Manchester whereas 50 years ago neither of these products would have been available in those places. A) Cause. B) Positive Impact. C) Negative Impact. D) None of the above. Show Answer Correct Answer: A) Cause. 49. Who first came to India for trading purpose? A) Danish. B) Roman Empire. C) Portuguese. D) Dutch. Show Answer Correct Answer: C) Portuguese. 50. What was a significant change in human resource management after policy changes? A) Need for highly skilled human resources. B) Inadequately trained personnel were sufficient. C) No change in management practices. D) Less focus on training. Show Answer Correct Answer: A) Need for highly skilled human resources. 51. WTO stands for ..... A) World Tariff Organisation. B) World Trade Organisation. C) World Transport Organisation. D) Wallet Transaction Operation. Show Answer Correct Answer: B) World Trade Organisation. 52. Which of the following is NOT a featureof globalization? A) Trade liberalization. B) Protectionism. C) E-commerce. D) Commercialization. Show Answer Correct Answer: B) Protectionism. 53. MNCs are playing a major role in the globalisation process. A) True. B) False. C) Not at all. D) None of the above. Show Answer Correct Answer: A) True. 54. The need for workers from poor countries to seek work in rich countries can sometimes mean that families have to temporarily move apart. A) Study. B) Confuse. C) Separate. D) Remove. Show Answer Correct Answer: C) Separate. 55. Which of the following is not a part of Foreign Institutional investors? A) Indian commercial banks. B) Merchant Bankers. C) Pension funds. D) Mutual funds. Show Answer Correct Answer: A) Indian commercial banks. 56. The exchange of goods and services by sale or barter driven by the need for resources. A) Fair Trade. B) Globalization. C) Trade. D) Standard of Living. Show Answer Correct Answer: C) Trade. 57. Production of goods are moved from developed countries to developing countries to ..... A) Lower the maintenance. B) To lower transportation. C) Lessen the production. D) Lower labor cost. Show Answer Correct Answer: D) Lower labor cost. 58. Which of the following are high income countries? A) The USA, Canada and the UK. B) Australia, New Zealand and South Korea. C) Peru, Bolivia and Argentina. D) None of the above. Show Answer Correct Answer: A) The USA, Canada and the UK. 59. Globalisation operates mostly in the interests of the richest countries, which continue to dominate world trade at the expense of developing countries. A) Cause. B) Positive Impact. C) Negative Impact. D) None of the above. Show Answer Correct Answer: A) Cause. 60. Saga Falabella, Sodimac, Wong, Nike; are ..... companies. A) National. B) International. C) All the above. D) None of the above. 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