Class 12 Economics MCQ Chapter 12 Economic Reforms Since 1991

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Class 12 Economics MCQ Chapter 12 Economic Reforms Since 1991

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Economic Reforms Since 1991

Chapter: 12

PART – B: INDIAN ECONOMIC DEVELOPMENT

1. What does the term ‘economic reforms’ refer to in India?

(i) Changes in political policies.

(ii) Changes in social welfare schemes.

(iii) Changes in economic policies to improve efficiency, productivity, and profitability.

(iv) Changes in labor laws.

Ans: (iii) Changes in economic policies to improve efficiency, productivity, and profitability.

2. Who is known as the Father of Indian Economic Reforms?

(i) Manmohan Singh.

(ii) Narasimha Rao.

(iii) Indira Gandhi.

(iv) Rajiv Gandhi.

Ans: (ii) Narasimha Rao.

3. What was the primary objective of the economic reforms introduced in 1991?

(i) To increase government control over the economy.

(ii) To improve the efficiency, productivity, and profitability of the economy.

(iii) To eliminate foreign trade.

(iv) To focus on the public sector.

Ans: (ii) To improve the efficiency, productivity, and profitability of the economy.

4. Which model of growth is associated with India’s economic reforms since 1991?

(i) Mixed Economy Model.

(ii) Liberalization-Privatization-Globalization (LPG) Model.

(iii) Socialistic Model.

(iv) Agricultural Development Model.

Ans: (ii) Liberalization-Privatization-Globalization (LPG) Model.

5. Which Finance Minister played a key role in liberalizing India’s economy in 1991?

(i) P. Chidambaram.

(ii) Manmohan Singh.

(iii) Arun Jaitley.

(iv) Pranab Mukherjee.

Ans: (ii) Manmohan Singh.

6. What was the foreign exchange reserve crisis in India in 1991?

(i) India had excess foreign exchange reserves.

(ii) India had insufficient reserves to pay for imports.

(iii) India was borrowing more than necessary.

(iv) India was unable to convert foreign exchange into local currency.

Ans: (ii) India had insufficient reserves to pay for imports.

7. What was the primary cause of the foreign exchange crisis in 1991?

(i) High fiscal deficit.

(ii) Excessive foreign debt.

(iii) Depletion of foreign exchange reserves.

(iv) Increase in imports.

Ans: (iii) Depletion of foreign exchange reserves.

8. What was the key policy implemented in 1991 to stabilize India’s economy?

(i) Industrial licensing.

(ii) Economic liberalization.

(iii) Protectionist trade policies.

(iv) Nationalization of industries.

Ans: (ii) Economic liberalization.

9. Which international organizations played a role in India’s 1991 economic reforms?

(i) United Nations and WTO.

(ii) IMF and World Bank.

(iii) Asian Development Bank and UNDP.

(iv) OPEC and ADB.

Ans: (ii) IMF and World Bank.

10. Which economic challenge did India face in the early 1990s?

(i) Rising unemployment.

(ii) Foreign exchange crisis.

(iii) Declining agricultural output.

(iv) Population explosion.

Ans: (ii) Foreign exchange crisis.

11. Which of the following measures was introduced to address the fiscal deficit after 1991?

(i) Increase in taxes.

(ii) Reduction in public sector expenditure.

(iii) Increase in subsidies.

(iv) Nationalization of industries.

Ans: (ii) Reduction in public sector expenditure.

12. What is the meaning of liberalization in the context of India’s economic reforms?

(i) Reducing the role of the private sector.

(ii) Relaxing government controls and restrictions.

(iii) Expanding the public sector.

(iv) Focusing solely on agricultural development.

Ans: (ii) Relaxing government controls and restrictions.

13. Which of the following was abolished to encourage economic liberalization in India in 1991?

(i) Import quotas.

(ii) Public sector enterprises.

(iii) Economic subsidies.

(iv) Trade unions.

Ans: (i) Import quotas.

14. What does privatization refer to in the context of India’s economic reforms?

(i) Government’s increased role in economic activities.

(ii) Selling off public sector enterprises to private investors.

(iii) Nationalization of industries.

(iv) Increasing the number of public sector jobs.

Ans: (ii) Selling off public sector enterprises to private investors.

15. Which sector was primarily targeted by the economic reforms for growth and modernization?

(i) Primary sector (agriculture).

(ii) Secondary sector (industry).

(iii) Tertiary sector (services).

(iv) All sectors equally.

Ans: (ii) Secondary sector (industry).