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CBSE Questions for Class 12 Commerce Economics Liberalization,Privatisation And Globalisation: An Appraisal Quiz 3 - MCQExams.com
CBSE
Class 12 Commerce Economics
Liberalization,Privatisation And Globalisation: An Appraisal
Quiz 3
If privatization is to take off and help realize higher productivity and profit, the essential pre-requisite are ___________.
(i) Liberalization.
(ii) Regulation
(iii) Deregulation
(iv) Globalization
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0%
(i) Only
0%
(iii) Only
0%
(i) and (iii)
0%
(i), (ii) and (iv).
Explanation
If privatization is to take-off and help realize higher productivity and profit, the essential pre-requisite are liberalization and deregulation.
Liberalization refers to the removal of restrictions on the free exchange of goods and services between nations.
Deregulation refers to the removal of state restrictions from the sphere of economy.
Disinvestments means selling of a public investment to ___________.
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0%
private enterprises
0%
public enterprises
0%
capital market
0%
departmental enterprises
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.
Privatization in India generally is in the form of disinvestments of _____________.
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0%
debts
0%
equity
0%
debenture
0%
non-current liabilities
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.
Privatization in India generally is in the form of disinvestment of equity.
Which international organization does not facilitate the process of globalization?
Report Question
0%
IBRD
0%
IDBI
0%
IMF
0%
WTO
Explanation
IDBI
stands for Industrial Development Bank of India. It is owned by the Government of India. Globalization is the process of integrating the world economy into a village economy and hence IDBI is an international organization which does not facilitate the process of globalization.
Disinvestment Commission in India was established in ___________.
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0%
August 1992
0%
August 1995
0%
August 1996
0%
May 1997
Disinvestments programme was started in ____________.
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0%
1990-91
0%
1991-92
0%
1992-93
0%
1993-94
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.
Privatization in India generally is in the form of disinvestment of equity. Disinvestment programme was started in 1991-92 when New Economic Policy was introduced in India.
Chronically sick public units will be referred to ___________.
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0%
BIFR
0%
BEFR
0%
private sector
0%
none of the above
Explanation
BIFR stands for
Board for Industrial and Financial Reconstruction. It is an organization of Government of India. Chronically sick public units will be referred to BIFR. It is a
part of the Department of Financial Services of the Ministry of Finance.
As a part of privatization program government equity in the public sector is being unloaded in the market, this known as _________.
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0%
disinvestment
0%
liberalization
0%
globalization
0%
free economy
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.
Select the incorrect one/ones about the meaning of 'privatization' from the list given below, using the code:
The process of de-nationalisation
Divesting the shares of the government - owned companies
De-licensing, dismantling permit and quota, allowing foreign investment, etc.
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0%
$$1$$ and $$2$$
0%
Only $$2$$
0%
$$2$$ and $$3$$
0%
$$1, 2$$ and $$3$$
Privatization is introduced mainly ___________.
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0%
to improve efficiency of government undertakings
0%
to reduce budgetary deficit
0%
to ensure better utilization of resources
0%
all of the above
Explanation
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. It is introduced mainly to improve efficiency of government undertakings, reduce budgetary deficit and ensure better utilization of resources.
WTO stands for ____________.
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0%
World Tour Organisation
0%
World Tourist Organisation
0%
World Trade Organisation
0%
None of above
Explanation
WTO stands for World Trade Organization. It mainly deals with the regulation of international trade. Headquarter of WTO is in Geneva, Switzerland. It was established in 1995 and replaced GATT.
Select the incorrect statement related to the trade regulation by the WTO, using the code given below:
It provides most favoured nation (MFN) treatment to all member countries for each other.
Member economies are not allowed to impose 'anti-dumping' or 'counter veiling' duties.
Treating a product of foreign origin for custom imposition by the member countries is not allowed in normal case.
Report Question
0%
Only $$1$$
0%
$$1$$ and $$3$$
0%
Only $$2$$
0%
$$2$$ and $$3$$
The WTO allows its member nations to impose suitable custom duties on imports when -
there is a sudden surge in imports with fast depletion of foreign currency reserves in a country.
the country manages a comfortable level of forex reserves but faces the imminent risk of balance of payment crisis.
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0%
Only $$1$$
0%
$$1$$ and $$2$$
0%
Only $$2$$
0%
None of the above
Which of the following is/ are correct about the famous 'Washington Consensus'?
It recognises the limits of a state-dominated economy.
It was usually seen as a corollary of promoting 'naked capitalism'.
The view promoted by it is also known as 'neo-liberalism'.
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0%
$$1$$ and $$2$$
0%
$$2$$ and $$3$$
0%
$$1$$ and $$3$$
0%
$$1, 2$$ and $$3$$
For the first time since the WTO came into being the developed nations wanted to introduce 'new issues' inside its fold which was opposed by the developing nations. Select those new issues upon which a consensus could not emerge, using the code given below:
Global value chain
e-Commerce
Competition and Labour ways
Environment and Investment.
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0%
$$1$$ and $$2$$
0%
$$2$$ and $$3$$
0%
$$1, 2$$ and $$3$$
0%
$$1, 2, 3$$ and $$4$$
What is the term used for interdependence among countries with regard to goods, services, capital, etc.?
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0%
Deregulation.
0%
Globalization.
0%
Liberalization.
0%
Privatization.
Explanation
Globalization is a process of integrating the world economy. It is also used to describe the interdependence among countries with regard to goods, services, capital, etc. It is one of the agendas of the New Economic Policy 1991.
Which of the following were the aims behind the setting up of the world Trade Organization (WTO)?
Promotion of free trade and resource flow across countries
Protection of intellectual property rights
Managing balanced trade between different countries
Promotion of trade between the former East Block countries and the western world.
Select the correct answer using the codes given below:
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0%
1, 2, 3 and 4
0%
1 and 2
0%
2 and 3
0%
1 and 4
In the context of the affairs of which of the following is the phrase "Special Safeguard Mechanisms" mentioned in the news frequently?
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0%
United Nations Environment Programme
0%
World Trade Organisation
0%
ASEAN-India Free Trade Agreement
0%
G-20 Summits
NAMA-11, group of countries frequently appears in the news in the context of the affairs of which one of the following?
Report Question
0%
Nuclear Suppliers Group
0%
World Bank
0%
World Economic Forum
0%
W.T.O
Which country started privatisation of state-owned enterprises as a major state policy?
Report Question
0%
UK under Margaret Thatcher
0%
Russia in CIS
0%
Mexico, Argentina and Brazil
0%
Italy, France and Malaysia
Explanation
The United Kingdom, under Margaret Thatcher started privisation of state-owned enterprises as a major state policy. The Ridley report devised for the Thatcher shadow cabinet, recommended a policy of breaking up the public sector and dismembering unions.
State owned enterprise : It is a legal entity that undertakes commercial activities on behalf of the state.
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