CBSE Class 11 Economics Liberalisation Privatisation And Globalisation

Question. The economic system adopted by India is
(a) Capitalistic
(b) Socialistic
(c) Mixed Economy
(d) None of these
Answer. C

Question. When was Planning Commission setup?
(a) 1949
(b) 1950
(c) 1956
(d) 1850
Answer. B

Question. In which year was India’s First Five Year Plan launched?
(a) 1951–56
(b) 1952–57
(c) 1947–52
(d) 1950–55
Answer. A

Question. Which Five Year Plan was implemented during the year 2012–17?
(a) Eighteenth
(b) Ninth
(c) Eleventh
(d) Twelfth
Answer. D

Question. Which of the following is not a goal of perspective plans in India?
(a) GDP Growth
(b) Equity
(c) Land reforms
(d) Self-reliance
Answer. C

Question. In which economy means of production are owned, controlled and operated by the Government?
(a) Mixed Economy
(b) Socialist Economy
(c) Capitalist Economy
(d) None of these
Answer. B

Question. In a Capitalist Economy means of production are owned, controlled and operated by:
(a) Private sector
(b) Public sector
(c) External sector
(d) Both (a) and (b)
Answer. A

Question. Name the body/institution which was engaged in the formulation of Five Year Plans in India.
(a) Planning Commission
(b) Election Commission
(c) National Development Commission
(d) None of these
Answer. A

Question. When was NITI Aayog formed?
(a) 1950
(b) 1991
(c) 2015
(d) 2012
Answer. C

Question. Who is the ex-officio chairman of the NITI Aayog?
(a) Prime Minister
(b) Home Minister
(c) Finance Minister
(d) President
Answer. A

Question. Mahalanobis Model was started in ___________ Five Year Plan.
(a) First
(b) Second
(c) Tenth
(d) Eleventh
Answer. B

Question. Which of the following facts are associated with P.C. Mahalanobis?
(a) He is known as the architect of Indian planning.
(b) He started the journal Sankhya.
(c) He established the Indian Statistical Institute.
(d) All of the above.
Answer. D

Question. Who is known as the architect of Indian Planning?
(a) Jawaharlal Nehru
(b) Dr. B.R. Ambedkar
(c) P.C. Mahalanobis
(d) Dadabhai Naoroji
Answer. C

Question. The production decision under which economic system is based upon the market forces of demand and supply?
(a) Capitalism
(b) Socialism
(c) Mixed
(d) Monarchy
Answer. A

Question. Which amongst the following are the central problems of an economy?
(a) What to produce
(b) How to produce
(c) For whom to produce
(d) All of the above
Answer. D

Question. Which sector made the maximum contribution in the national income of India from the period 1950–91?
(a) Agriculture sector
(b) Service sector
(c) Industrial sector
(d) None of these
Answer. A

Question. The term ‘natural rate of unemployment’ is consistent with the situation of:
(a) Full employment
(b) Under employment
(c) Disguised unemployment
(d) Structural unemployment
Answer. A

Question. ‘Modernisation’ as a goal of planning in context of Indian economy aimed at:
(a) Use of new technology
(b) Change in social outlook
(c) Adopting western lifestyle
(d) Both (a) and (b) above
Answer. D

Question. The share of agricultural sector in India’s GDP has tended to:
(a) Decline
(b) Rise
(c) Remain constant
(d) First decline then increase
Answer. A

Question. Equity as a goal of planning aims to achieve the following objectives:
(a) Reduction in economic inequalities
(b) Curbing concentration of economic power
(c) Uplifting the weaker sections of the society
(d) All of the above
Answer. D

CBSE Class 11 Economics Chapter 3 Liberalisation Privatisation And Globalisation Match the following

1. (i) Gross Domestic Product         (a) A system under which a set of target is
                                                            defined by the central authority
(ii) Long term planning                     (b) Architect of Indian planning
(iii) Economic planning                    (c) Market value of all final goods
(iv) P. C. Mahalanobis                     (d) Perspective plans
Answer. (i) (c) (ii) (d) (iii) (a) (iv) (b)

CBSE Class 11 Economics Chapter 3 Liberalisation Privatisation And Globalisation Fill in the blanks

1. A _________ economy may be defined as an economic system in which the means of production are privately owned and economic activities are guided by self-interest and profit motive.
2. ___________ economy is a system in which means of production are owned by the whole community and all economic decisions are taken by a central authority.
3. A ______________ economy is a system in which both private and public sector co-exist and both work under the general guidance of an economic planning.
4. The post-independent India chose the path of ___________ economy through economic planning for her development.
5. __________ is a system under which a set for targets is defined by the central authority of the country.
6. In India, __________ formulated the plans for the country.
7. The Planning Commission in India was constituted in the year __________ under the chairmanship of Pt. Jawaharlal Nehru.
8. Long term plan is also termed as __________ plan.
9. Short period objectives of planning are for the term of __________ years.
10. __________ is regarded as the architect of Indian planning.
11. __________ refers to an increase in country’s productive capacity and is measured by increase in real per capita GDP
12. With the process of development, the share of __________ sector in GDP declines whereas the share of industry and service sector increases.
13. __________ implies avoiding dependence on imports of those goods which could be produced in the country itself.
14. __________ refers to adoption of new technology in the field of production and change in social outlook.
15. __________ institution replaced Planning Commission in India.
16. __________ is a policy think-tank of Government of India and aims to involve the states in economic policy-making in India.
17. An economy in which means of production are used in a manner such that social welfare is maximised is called __________ economy.
18. Objective of planning necessary to reduce our dependence on foreign goods is called__________ .
Answer. 
1. Capitalist                     2. Socialist
3. Mixed economy          4. Mixed
5. Economic Planning    6. Planning Commission
7. 1950                           8. Perspective
9. Five                           10. Prof. P.C. Mahalanobis
11. Economic growth    12. Agriculture
13. Self-reliance           14. Modernisation
15. NITI Aayog             16. NITI Aayog
17. Socialist                 18. Self-reliance

CBSE Class 11 Economics Chapter 3 Liberalisation Privatisation And Globalisation Very Short Answer Questions

Question. What are the three questions that every economic system has to answer?
Answer. The three questions are: (i) What to produce? (ii) How to produce? (iii) For whom to produce?

Question. Define a capitalist economy.
Answer. A capitalist economy may be defined as an economic system in which the means of production are privately owned and economic activities are guided by self-interest and profit motive.

Question. Define a socialist economy.
Answer. Socialist economy is a system in which means of production are owned by the whole community and all economic decisions are taken by a central authority.

Question. What do you mean by mixed economy?
Answer. A mixed economy is an economy in which both private and public sector co-exist and both work under the general guidance of economic planning.

Question. What type of economic system was accepted in post-independent India?
Answer. The post-independent India chose the path of mixed economy for her development.

Question. What is economic planning?
Answer. Economic planning is essentially a way of organising and utilising resources to the maximum advantage in terms of defined social ends.

Question. When was India’s Planning Commission constituted and who was its first chairman?
Answer. The planning commission in India was constituted in March 1950 under the chairmanship of Pt. Jawaharlal Nehru.

Question. Who is regarded as the architect of Indian planning?
Answer. Prof. P.C. Mahalanobis is regarded as the architect of Indian planning.

Question. List the long-term objectives of Indian planning.
Answer. Rapid economic growth, Equity; Self- reliance; Modernisation; Full employment.

Question. What is economic growth?
Answer. Economic growth refers to increase in country’s productive capacity and it is measured by increase in real per capita GDP.

Question. What is meant by sectoral (or structural) composition of an economy?
Answer. The contribution of various sectors to the GDP is termed as sectoral composition of the economy.

Question. What changes take place in the sectoral composition of an economy during the process of development?
Answer. With the process of development the share of agriculture in GDP declines whereas the share of industry and service sectors increase.

Question. What changes have been observed in the contribution of agricultural sector to GDP from the period 1950-51 to 1990-91?
Answer. The contribution of agricultural sector to GDP declined from 59 per cent in 1950-51 to nearly 35 per cent in 1990-91.

Question. What are the three main dimensions of the objective of social and economic justice?
Answer. (i) Reduction in economic inequalities
(ii) Curbing concentration of economic power
(iii) Uplifting the weaker sections of the society

Question. What is meant by self-reliance?
Answer. Self-reliance implies avoiding dependence on imports of those goods which could be produced in the country itself.

Question. What is meant by modernisation?
Answer. Modernisation refers to adoption of new technology in the field of production and change in social outlook.

Question. What is the name of the institution which is formed in place of planning commission?
Answer. The name of the new institution is NITI Aayog (or National Institution for Transforming India).

Question. When was NITI Aayog formed?
Answer. NITI Aayog was formed on January 1, 2015.

Question. What is the main function of NITI Aayog?
Answer. NITI Aayog is a policy think-tank of government of India that aims to involve the states in economic policy-making in India.

Question. What is the basic difference between Planning Commission and NITI Aayog?
Answer. NITI Aayog will be providing strategic and technical advice to the Central and the state governments i.e. by adopting bottom-up approach rather than traditional top-down appraoch as adopted by the Planning Commission

LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL

Very Short Answer Questions 

1. What are tariffs?

2. Name the central bank in India.

3. What are taxes?

4. Define outsourcing.

5. What is the other name of the policy of Liberalisation, Privatisation and Globalisation?

6. What are ‘navratnas’?

Short Answer Questions 

1. Describe the economic condition prevailing in the economy that lead to the introduction of reforms in India?

2. What were the major policy changes introduced in the New Economic Policy?

3. Define Liberalisation. What were the main reasons to introduce reforms in India?

4. State the reforms introduced in the financial sector

5. What reform measures were introduced in the industrial sector?

6. What do you understand by devaluation of rupee?

7. Define Privatisation and explain the different ways of privatisation.

8. Those public sector undertakings which are not making profits should be privatised. Do you agree with this view? Why?

9. Why are tariffs imposed?

10. What is the meaning of quantitative restrictions?

Long Answer Questions 

1. Do you think outsourcing is good for India? Why are developed countries opposing it?

2. What are the major factors responsible for the high growth of the service sector?

3. Agriculture sector appears to be adversely affected by the reform process. Why?

4. Why has the industrial sector performed poorly in the reform period?

5. Discuss economic reforms in India in the light of social justice and welfare.

NCERT text book questions 

1. What is the most important function of RBI?

2. What do you understand by devaluation of rupee?

3. India has certain advantages which makes it a favouriteoutsourcing destination. What are these advantages?

4. Was it necessary for India to introduce economic reforms at thebehest of World Bank and International Monetary Fund? Was thereno alternative for the government to solve the balance of paymentscrisis?

Please click the link below to download CBSE Class 11 Economics - Liberalisation Privatisation And Globalisation.