CBSE Class 11 Economics Liberalisation Privatisation And Globalisation Worksheet

I. Choose the correct alternative.

Question. In which year did India adopt the economic reforms?
(a) 1991
(b) 1993
(c) 1998
(d) 2001
Answer: (A)

Question. 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
Answer: (D)

Question. When did the Gulf Crisis take place?
(a) 1985
(b) 1990-91
(c) 1995
(d) 1975
Answer: (B)

Question. How much loan was provided by World Bank and IMF during the nineties to bail India out of the crisis?
(a) \( \$10 \) million
(b) \( \$10 \) billion
(c) \( \$7 \) billion
(d) \( \$20 \) billion
Answer: (C)

Question. What is the main feature of New Economic Policy?
(a) Liberalisation
(b) Privatisation
(c) Globalisation
(d) All of the above
Answer: (D)

Question. For how many industries, licensing is still necessary?
(a) 7
(b) 6
(c) 9
(d) 10
Answer: (B)

Question. How many industries are entirely reserved for the public sector?
(a) 6
(b) 10
(c) 2
(d) 4
Answer: (C)

Question. What is the investment limit in small scale industries?
(a) 50 lakh
(b) 1 crore
(c) 25 lakh
(d) 75 crore
Answer: (B)

Question. When was VAT introduced in most of the States of India?
(a) 1995
(b) 2001
(c) 2005
(d) 2006
Answer: (C)

Question. How many countries are the members of WTO?
(a) 164
(b) 120
(c) 96
(d) 48
Answer: (A)

Question. When was WTO established?
(a) 1996
(b) 1998
(c) 2000
(d) 1995
Answer: (D)

Question. Where is the headquarters of WTO located?
(a) Italy
(b) Geneva
(c) New York
(d) Washington
Answer: (B)

II. Fill in the blanks with the correct answer.

Question. India met with an economic crisis in 1991 as it failed to repay its _______ from abroad.
Answer: borrowings

Question. _______ is the excess of expenditure (borrowings) over income.
Answer: Deficit

Question. To overcome the crisis, India approached IMF and World Bank for _________
Answer: loan

Question. Economic reforms refer to all those measures that aim at rendering the economy more efficient, competitive and _________
Answer: developed

Question. Fiscal policy refers to the revenue and expenditure policy of the government to achieve _______ development in the economy.
Answer: balanced

Question. Financial sectors were allowed to take decisions on various matters, without consulting ________
Answer: RBI

Question. Trade policy reforms led to the removal of export duties to ________ India’s competitive position.
Answer: increase

Question. India has become an important destination for global ______ since the reforms.
Answer: outsourcing

Question. Trade between two countries is called ________ trade.
Answer: bilateral

Question. The industrial sector has experienced _______ in growth pattern.
Answer: fluctuations

III. State whether the following statements are true or false.

Question. Despite efficient management of the Indian economy, India faced an economic crisis in 1991.
Answer: False

Question. The crisis led to a rise in the prices of essential goods.
Answer: True

Question. Reserve Bank of India announced New Economic Policy as a condition to support the Indian economy.
Answer: False

Question. Opening up the economy by removing restrictions on the private sector is called globalisation.
Answer: False

Question. Industrial licensing was abolished on all products except on those which were important from a profit point of view.
Answer: False

Question. The rupee was devalued to resolve the balance of payments crisis.
Answer: True

Question. A fixed exchange rate system was adopted to avoid rigidity in the foreign exchange market.
Answer: False

Question. Private ownership is capable of utilising capital and other resources more efficiently.
Answer: True

Question. GATT is the successor to the WTO.
Answer: False

Question. Opening up the economy resulted in a rapid increase in FDI and foreign exchange reserves.
Answer: True

IV. Match the following.

Question. Match the items in Column-I with Column-II:
Column-I
1. Economic Reforms
2. Gulf Crisis
3. WTO
4. VAT
5. GATT
6. Liberalisation
7. Privatisation
8. Globalisation
9. GST
10. Demonetization

Column-II
(a) 1995
(b) 2005
(c) 1990-91
(d) 1991
(e) 1948
(f) Sale of public sector shares
(g) Abolition of licensing
(h) Integration of domestic economy with rest of the world
(i) Stripping a currency unit
(j) An indirect tax
Answer: 1-(d), 2-(c), 3-(a), 4-(b), 5-(e), 6-(g), 7-(f), 8-(h), 9-(j), 10-(i)

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