Argument in Favour of New Economic Policies

Q. Which of the following is an argument in favour of new economic policies?

1. Increase in monopoly
2. Increase in national income
3. Increase in income disparity
4. Increase in environmental pollution

Q. Which of the following statements favour(s) the adoption of the New Economic Policy?

1. The New Economic Policy could lead to an increase in employment opportunities and job security.
2. Due to competition between foreign and domestic producers, consumers could get access to a variety of products.
3. The open market could facilitate monopoly of certain companies.
4. The New Economic Policy could bring in equality in income distribution.

Q. How did the New Economic Policy prove beneficial to India?

1. The domestic producer could produce more using advanced technologies.
2. Setting up new businesses became comparatively easy for domestic producers.
3. It helped increase the national income.
4. It helped in equal distribution of income.

Q. Which of the following can be identified as an advantage of the new economic policies to India?

1. Access to advanced technology
2. Increase in monopoly
3. Increase in imports
4. Increase in income disparity

Q. How does an increase in foreign trade benefit the country?

1. An increase in exports increases the foreign currency reserves.
2. An increase in imports increases the foreign currency reserves.
3. An increase in exports decreases the foreign currency reserves.
4. An increase in imports decreases the foreign currency reserves.

Q. The Indian economy has witnessed various changes since the introduction of the New Economic Policies of 1991.
Which of the following are a few positive impacts of the New Economic Policies in India?

1. Increase in production
2. Increase in exports
3. Increase in employment opportunities
4. Increase in imports