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CBSE Questions for Class 12 Commerce Economics Liberalization,Privatisation And Globalisation: An Appraisal Quiz 2 - MCQExams.com
CBSE
Class 12 Commerce Economics
Liberalization,Privatisation And Globalisation: An Appraisal
Quiz 2
State whether the following statements are True or False.
Global economy and international economy means the same.
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True
0%
False
Explanation
Global economy includes the economy of all the countries in the world, whereas international economy refers to the economic condition of two or more nations. Thus, global economy has a larger scope than international economy.
State whether the following statements are True or False.
Globalisation will adversely affect poor farmers.
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True
0%
False
Explanation
Globalization is the process of integration of the world into a single economic unit. It will not benefit Indian agricultural sector since the poor farmers do not possess enough resources to face the global competition and lack of irrigation and other support facilities further widen the gap.
_______ is/are the ways towards liberalization.
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Privatisation
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Liberalize economic policies.
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Financial sector reforms.
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All of the above
Explanation
Ways towards liberalization are:
1) Privatization: It refers to the sale or transfer of public assets to the private ownership.
2) Liberalize economic policies: Restriction from economic policies were abolished and liberalized in the global arena with the global market orientation.
3) Financial sector reforms: Financial sector was reformed in favor of liberalization.
Which of these is not a method of privatization ?
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Leasing
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Divestment
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Franchising
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Public action
Explanation
Public action is not a method of privatization as privatization is a method of transfer or sale of public assets to the private ownership.
Privatization means ________.
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transfer of assets or services from public ownership to private ownership in part or full.
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sale of all government assets and properties to public.
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sale of profit making companies to multi-national companies.
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sale of loss making PSUs to foreign countries.
Explanation
Privatization includes ownership, organizational and operational measures. It refers to the process of transferring or sale of the public ownership to private ownership in part or full. It is a process of reducing government's role in the economy.
State whether the following statements are True or False.
New Economic Policy of 1991 aimed at liberalisation of Indian Economy.
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True
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False
Explanation
It is true that New Economic Policy of 1991 aimed at liberalization of Indian Economy.
Liberalization refers to the process of eliminating unnecessary controls and restrictions on the smooth functioning of business enterprise. It includes:
a) Abolishing industrial licensing requirement in most of the industries.
b) Freedom in deciding the scale of business activities.
c) Freedom in fixing prices of goods and services.
d) Reduction in tax rates.
Privatization is normally opposed by _________.
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trade unions
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government employees in public sector
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communist and socialist parties
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all of the above
Explanation
Privatization includes ownership, organizational and operational measures. It refers to the process of transferring or sale of the public ownership to private ownership.It is normally opposed by trade unions, government employees in public sector and communist and socialist parties.
WTO was formed in _______.
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1949
0%
1999
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1995
0%
2001
Explanation
WTO stands for World Trade Organization. It was formed in 1995. Headquaters of WTO is in Geneva, Switzerland. Purpose of WTO is to regulate international trade and to maintain a proper global market orientation.
ICSID was founded in _______.
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1966
0%
1976
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1980
0%
1975
Explanation
ICSID stands for International Centre for Settlement of Investment Disputes. World Bank Group is the parent organization of ICSID. Its headquater is in Washington DC. It is established in 1966 for legal dispute resolution.
World Trade Organization (WTO) came in existence on ___________.
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1.1.1995
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1.4.1995
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1.6.1995
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1.9.1995
Explanation
WTO stands for World Trade Organization. It was formed on $$1^{st}$$
January, 1995. Headquarters of WTO is in Geneva, Switzerland. Purpose of WTO is to regulate international trade and to maintain a proper global market orientation.
Which of the following statements is correct?
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The disinvestment programmes has been successfully carried out in India.
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Privatisation up to $$100$$ percent has been carried out in all the PSUs in India.
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Under strategic sale method of disinvestment, the government sells major share to a strategic buyer.
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None of the above.
Explanation
Privatization includes ownership, organizational and operational measures. It refers to the process of transferring or sale of the public ownership to private ownership in part or full. It is a process of reducing government's role in the economy. Disinvestment means disposal of equity of public sector units in the market. Disinvestment is one of the operational measure of privatization.
General Agreement on Tariffs and Trade (GATT) came into existence in ________.
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1952
0%
1942
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1947
0%
1958
Explanation
GATT stands for General Agreements on Tariffs and Trade. It was drafted in 1947 as a provisional agreement to regulate international trade. It is a legal agreement between many countries. It focuses to remove restriction on international trade.
Regulation & control over private sector involved _______.
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industrial licensing & MRTP Act
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high taxation, price & distribution controls
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foreign exchange controls
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all of the above
Explanation
Regulation and control over private sector involved industrial licensing & MRTP Act, high taxation, price & distribution controls and foreign exchange controls since new economic policy of 1991 introduced privatization. Privatization includes ownership, organizational and operational measures.
It refers to the process of transferring or sale of the public ownership to private ownership. It is normally opposed by trade unions, government employees in public sector and communist and socialist parties.
For disinvestment of public sector shares, ___________ should be sufficiently developed.
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money market
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commodity market
0%
bullion market
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capital market
Explanation
Disinvestment means disposal of equity of public sector units in the market. Disinvestment is one of the operational measure of privatization.
Privatization in India generally is in the form of disinvestment of equity. For disinvestment of public sector shares, capital market should be sufficiently developed. Capital market refers to the financial market where long-term debt and equity securities are bought and sold.
Which of the following organisation is not joined by India?
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APEC
0%
ASEAN
0%
NAFTA
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All of the above
________
refers to the transfer of assets or service functions from public to private ownership.
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Liberalisation
0%
Privatisation
0%
Globalisation
0%
Disinvestment
Explanation
Privatization means transfer of ownership management and control of public sector enterprise to the entertainers in the private sector which leads to better management of the enterprises and also freedom from bureaucracy. It encourages the enterpreneurship which leads to growth and development of the economy. The purpose of the privatization was mainly to improve financial discipline and facilitates modernization.
Hence, option B is correct.
As per Patents Amendment Act, 2002, term of a patent right is limited to ______.
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20 years from the date of filing
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16 years from the date of filing
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10 years from the date of filing
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5 years from the date of filing
Explanation
As per Patents Amendment Act, 2002, term of a patent right is limited to 20 years from the date of filing. Patent is also known as copyright or license. The Patent Amendment Act provided for filing applications for product patent.
Select the correct matching
(A) Liberalization
(1) Refers to partial or full transfer of ownership and control of PSUs to the private sector.
(B) Privatization
(2) Refers to relaxation of government's restriction in the scope of economic and social polices.
(C) Disinvestment
(3) Refers to a method of privatization, whereby part of shareholdings of a PSU is sold to the private sector.
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A (2) B (1) C (3)
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A (1) B (3) C (2)
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A (3) B (1) C (2)
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A (1) B (2) C (3)
Explanation
1) Liberalization:
Refers to relaxation of government's restriction in the scope of economic and social polices.
2) Privatization:
Refers to partial or full transfer of ownership and control of Public sector undertakings to the private sector.
3) Disinvestment:
Refers to a method of privatization, whereby part of shareholdings of a Public Sector Undertaking is sold to the private sector.
Present membership of WTO is around ____________ countries.
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0%
135
0%
164
0%
180
0%
184
Explanation
WTO stands for World Trade Organization. It was formed in 1995. Headquarters of WTO is in Geneva, Switzerland. Purpose of WTO is to regulate international trade and to maintain a proper global market orientation. Present membership of WTO is around 164 countries.
Disinvestments in India has progressed __________.
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fastly
0%
slowly
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moderately
0%
constantly
Explanation
Disinvestment means disposal of equity of public sector units in the market. Disinvestment is one of the operational measure of privatization.
Privatization in India generally is in the form of disinvestment of equity. Disinvestment in India has progressed slowly.
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