Question 1

In which year was the New Economic Policy (NEP) introduced in India?

Accepted Answer

The New Economic Policy (NEP) was introduced in India in the year 1991 to overcome the severe balance of payments crisis and to initiate structural economic reforms.

Question 2

Which of the following is a component of the New Economic Policy of 1991?

Accepted Answer

Liberalisation, Privatisation, and Globalisation (LPG) are the three main components of the New Economic Policy introduced in India in 1991.

Question 3

What does Liberalisation mean in the context of economic reforms?

Accepted Answer

Liberalisation means the removal of unnecessary government controls and restrictions on economic activities to make the economy more open and competitive.

Question 4

Privatisation implies:

Accepted Answer

Privatisation implies the transfer of ownership, management, and control of public sector enterprises to the private sector.

Question 5

Globalisation is the process of:

Accepted Answer

Globalisation is the integration of the economy of a country with the world economy through trade, capital flows, and technology transfer.

Liberalisation, Privatisation and Globalisation — MP Board Class 11 Economics Important Questions & Revision Notes