Economic Reforms Since 1991 / New Economic Policy MCQ — Class 12

Test your understanding of Economic Reforms Since 1991 / New Economic Policy with 20 free questions across Easy and Moderate. Hard and Extreme require Premium. Choose a level in the interactive quiz to answer questions and review explanations.

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Key concepts to revise

1991 economic crisis

1991 economic crisis: a severe macroeconomic and external-sector stress that created pressure for major policy reform

Liberalisation

Liberalisation: reduction of unnecessary controls and restrictions to give economic agents greater freedom in production, investment and trade

Privatisation

Privatisation: increasing the role of private ownership or management in economic activity and reducing exclusive state ownership in selected enterprises

Globalisation

Globalisation: greater integration of the domestic economy with the world through trade, investment, technology and financial flows

Disinvestment

Disinvestment: sale of part or all of government ownership in a public enterprise

Financial-sector reforms

Financial-sector reforms: changes intended to make banking and financial markets more efficient, competitive and market-oriented while strengthening regulation

Tax reforms

Tax reforms: changes aimed at simplifying, rationalising and improving the efficiency of the tax system

Trade and investment reforms

Trade and investment reforms: lower trade barriers and easier foreign-investment rules used to increase international integration and competition

World Trade Organization

World Trade Organization: an international institution providing a rules-based framework for trade among member countries

Appraisal of reforms

Appraisal of reforms: economic reforms are assessed by weighing gains such as efficiency and integration against concerns such as uneven benefits, employment or sectoral stress

Try these sample MCQs

1. Which concept best matches this situation? Foreign-exchange and fiscal difficulties force a shift in the policy framework.

  1. Liberalisation
  2. 1991 economic crisis
  3. Globalisation
  4. Tax reforms
Check answer and explanation

1991 economic crisis. 1991 economic crisis: a severe macroeconomic and external-sector stress that created pressure for major policy reform

2. Which concept best matches this situation? Industrial licensing is reduced for many activities.

  1. Privatisation
  2. Disinvestment
  3. Liberalisation
  4. Trade and investment reforms
Check answer and explanation

Liberalisation. Liberalisation: reduction of unnecessary controls and restrictions to give economic agents greater freedom in production, investment and trade

3. Which concept best matches this situation? Government reduces its stake or opens an activity to private participation.

  1. Globalisation
  2. Financial-sector reforms
  3. World Trade Organization
  4. Privatisation
Check answer and explanation

Privatisation. Privatisation: increasing the role of private ownership or management in economic activity and reducing exclusive state ownership in selected enterprises

After the quiz

Write down the concepts you missed. Explain each one in your own words, give an example, and attempt the level again without notes. A high score on a short quiz does not replace revision of the whole chapter.

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