Important Questions for Class 11 Economics Chapter 3 Liberalisation, Privatisation and Globalisation: An Appraisal

These questions are outlined by expert economics teachers from the latest version of CBSE (NCERT) books.

CBSE Class 11 Economics Chapter 3: Important Questions

Question 1

What is the other name of the World Bank?

a. Federal Bank

b. ICICI Bank

c. IBRD

d. Bank of America

Answer:

c. IBRD

Question 2

What does WTO stand for?

Answer:

WTO stands for World Trade Organization.

Question 3

What is privatisation?

Answer:

Privatisation is the procedure of transferring an industry or enterprise from the public sector to the private sector. This is known as destatisation and denationalisation.

Also read: What is the meaning of privatisation?

Question 4

Why has the industrial sector growth  slowed down in India?

a. Due to the obtainability of cheaper imports and lower investments

b. Due to the increase in public income

c. Due to the good response from exports

d. Due to the decreased manpower in industries

Answer:

a. Due to the obtainability of cheaper imports and lower investments

Question 5

Industrialisation in India has recorded a slowdown in the period of economic reforms. What is/are the reason(s) for this?

a. The demand for domestic industrial products is decreasing.

b. Globalisation

c. India does not have access to different markets because of high non-tariff barriers.

d. All of the above

Answer:

d. All of the above

Question 6

What is globalisation?

Answer:

Globalisation means the opening of nationalistic and local outlooks to a broader perspective of an interlinked and interdependent world with free transfer of goods, capital, and services across the national borders.

Question 7

What are indirect taxes?

Answer:

Indirect taxes are the kind of taxes that are not directly imposed on the income earned; however, they are indirectly imposed on the expenses incurred by an individual. For example, VAT, service tax, entertainment tax, etc. Most of the taxes are merged and known as GST.

Question 8

What do economic reforms mean?

Answer:

Economic reforms imply those actions that are adapted for production effectiveness, competitive markets, and to ensure a rapid growth of the economy.

Question 9

What is the benefit that the domestic industries get by reducing the tariff?

Answer:

A primary benefit is that imports have become cheaper and there is an increase in the profit margin on exports for domestic industries.

Question 10

What are the Navaratna Companies of India?

Answer:

During 1997, the Government of India gave the status of Navaratna to nine public sector enterprises (PSEs), thus giving them a greater autonomy to compete in the market by assisting them in their path to become global tycoons. Currently, in India, there are 17 companies with the title of Navaratna – HAL, BHEL, MTNL, NTPC, Oil India, etc. This scheme was introduced by the government to identify the central public sector enterprises (CPSEs) that had a few merits.

Question 11

What is India’s export-import policy?

Answer:

The foreign trade policy is outlined and announced by the central government (Ministry of Commerce). Foreign trade policy or EXIM (Export-Import) policy is a set of regulations, guidelines, and instructions established by the DGFT (Directorate General of Foreign Trade) in the matters associated with the EXIM goods in India.

Export and import play an important role in the economic development of all the developing and developed nations along with the enhancement of international organisations like UNCTAD, WTO, ASEAN, etc.

Question 12

What is outsourcing? How is India benefited through it?

Answer:

India continues to be the major destination for outsourcing because it has been able to develop with the changing needs. National Association of Software and Services Companies (NASSCOM), which is the primary body of India’s foremost IT software and service (IT and BPO) companies, reported that India’s share in the global outsourcing market increased from 51% to 55% . India stands out at its best for customer service and effectiveness.

Must read: What is Liberalisation?

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