NCERT Class 11 Chapter 3 Economics Liberalization MCQ

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1. Which of the following is the feature of New Economic Reforms ?

A. Globalization

B. Liberalization

C. Privatization

D. All of the above

2. MUDRA Bank was set up to meet the credit needs of the

A. farmers

B. small enterprises

C. large enterprises

D. exporters

3. 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

4. How many industries are entirely reserved for the public sector?

A. 6

B. 10

C. 2

D. 4

5. Who is the Chairman of the GST Council?

A. Finance Minister

B. Prime Minister

C. Finance Secretary

D. Deputy Chairman of NITI Aayog

6. New Economic Policy was introduced in the year___________.

A. 1980

B. 1991

C. 2013

D. 2015

7. Special Economic Zones (SEZ) developed by the Government of India aim

A. to attract foreign companies to invest in India

B. to encourage small investors

C. to encourage regional development

D. none of the above

8. Where is the headquarters of WTO located?

A. Italy

B. Geneva

C. New York

D. Washington

9. Freedom of the producing units from direct or physical control imposed by the government is called____

A. Privatization

B. Globalization

C. Liberalization

D. None of the above

10. FDI (Foreign Direct Investment) attracted by globalisation in India belongs to the

A. World Bank

B. multinationals

C. foreign governments

D. none of the above

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11. When was WTO established?

A. 1996

B. 1998

C. 2000

D. 1995

12. If a country liberalises its trade, it will make the country more attractive for

A. inward investment

B. exchange reserve

C. consumption

D. price

13. Globalisation has improved the living structure of which of the following?

A. All the people

B. Workers in developing countries

C. People in developed countries

D. None of the above

14. Where is the headquarters of WTO located?

A. Italy

B. Geneva

C. New York

D. Washington

15. Economic reforms were introduced in India in the year

A. 1991

B. 1992

C. 2001

D. 2005

16. Tax on imports is an example of:

A. Terms of Trade

B. Collateral

C. Trade Barriers

D. Foreign Trade

17. For how many industries, licensing is still necessary?

A. 7

B. 6

C. 9

D. 10

18. Which one of the following is a major benefit of joint production between a local company and a Multi-National Company?

A. MNC can bring latest technology in the production

B. MNC can control the increase in the price

C. MNC can buy the local company

D. MNC can sell the products under their brand name

19. Which of the following replaced MRTP Act?

A. Competition Act

B. Foreign Exchange Management Act

C. New Companies Act

D. None of these

20. When did the Gulf Crisis take place?

A. 1985

B. 1990-91

C. 1995

D. 1975

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21. The removal of tariff barriers can lead to lower prices for

A. suppliers

B. consumers

C. competitors

D. none of these

22. The New Economic Policy was introduced in India in _____________.

A. 1991

B. 1998

C. 1997

D. None of these

23. New economic policy is also known as___

A. New economic reforms

B. New economic region

C. New economic law

D. None of the above

24. Which of these institutes supports investments and foreign trade in India?

A. International Monetary Fund (IMF)

B. World Trade Organisation (WTO)

C. World Bank

D. International Labour Organisation (ILO)

25. What is the investment limit in small scale industries?

A. 50 lakh

B. 1 crore

C. 25 lakh

D. 75 crore