Here we are providing 1 Mark Questions for Economics Class 12 Chapter 3 Liberalisation, Privatisation and Globalisation: An Appraisal are the best resource for students which helps in class 12 board exams.

One Mark Questions for Class 12 Economics Chapter 3 Liberalisation, Privatisation and Globalisation: An Appraisal

Question 1.
When were economic reforms introduced in India?
Answer:
Economic reforms were introduced in India in 1991. Economic reforms refer to all those measures that aim at rendering the economy more efficient, competitive and developed.

Question 2.
List any two reasons which led to economic reforms in India.
Answer:
The reasons which led to economic reforms in India include:
(i) Unfavourable Balance of Payment
(ii) Inflation
(iii) Falling foreign exchange reserves

Question 3.
What are the three broad components of New Economic Policy, 1991?
Answer:
The three broad components of New Economic Policy are:
(i) Liberalisation
(ii) Privatisation
(iii) Globalisation

Question 4.
Define liberalisation.
Answer:
Liberalisation means liberating the trade and industry of an economy from unnecessary restrictions and making the industries more competitive.

Question 5.
State any two reforms introduced under liberalisation.
Answer:
The reforms introduced under liberalisation include:
(i) Deregulation of industrial sector
(ii) Trade and investment policy reforms
(iii) Tax reforms

Question 6.
What is fiscal policy?
Answer:
It refers to the revenue and expenditure policy of the government to achieve balanced development in the economy.

Question 7.
Define direct tax. Give two examples.
Answer:
Direct taxes are those taxes levied immediately on the property and income of persons, and are paid directly by the consumers to the state. For example, income tax, property tax.

Question 8.
Define indirect tax. Give two examples.
Answer:
Indirect tax is a tax collected by an intermediary (seller) from the person who bears tne ultimate economic burden of the tax (buyer). For example, excise duty, sales tax.

Question 9.
What was the consequence of devaluation of rupee?
Answer:
Devaluation of rupee led to huge inflow of foreign exchange in India.

Question 10.
List the aims of trade policy reforms.
Answer:
The aims of trade policy reforms were:
(i) Removal of quantitative restrictions
(ii) Reduction in tariff rates
(iii) Removal of import licensing

Question 11.
For what categories of products was industrial licensing not abolished?
Answer:
Industrial licensing was not abolished for product categories such as alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace and drugs and pharmaceuticals.

Question 12.
Define privatisation.
Answer:
Privatisation means the induction of private management and control in the public sector enterprises.

Question 13.
What is disinvestment?
Answer:
Disinvestment involves selling a part of the Public Sector Undertaking’s equity to the public to promote privatisation.

Question 14.
State the purpose for undertaking disinvestment.
Answer:
Disinvestment was undertaken:
(i) to maintain fiscal discipline; and
(ii) to facilitate modernisation.

Question 15.
Define globalisation.
Answer:
Globalisation means unification or integration of the domestic economy with the world economy.

Question 16.
What is outsourcing?
Answer:
It is the practice of hiring external sources, mostly from other countries, for regular services.

Question 17.
List a few services which are being outsourced by companies in developed countries to India.
Answer:
A few services which are being outsourced by companies in developed countries to India are:
(i) Record keeping
(ii) Accountancy
(iii) Banking services
(iv) Music recording
(v) Film editing
(vi) Clinical advice

Question 18.
How are WTO and GATT related?
Answer:
GATT was established in 1948. WTO was founded in 1995 as the successor organisation to GATT.

Question 19.
Where is the headquarters of WTO?
Answer:
The headquarters of WTO is in Geneva.

Question 20.
What has been the impact of economic reforms on GDP?
Answer:
The overall GDP growth has increased as a result of economic reforms.

Question 21.
List the areas which were ignored during the reform period.
Answer:
The sectors which were ignored during the reform period are:.
(i) Agriculture
(ii) Industry
(iii) Employment
(iv) Infrastructure
(v) Fiscal management

Question 22.
Name the sector that benefited the most with the introduction of economic reforms in India.
Answer:
Service (tertiary) sector benefitted the most with the introduction of economic reforms in India

Question 23.
Define GST.
Answer:
GST (Goods and Services Tax) is an indirect tax for the whole nation, which will make India one unified common market.

Question 24.
Why is GST implemented?
Answer:
(i) GST will create a simpler tax system.
(ii) It increases overall transparency and compliance.

Question 25.
When was GST implemented in India?
Answer:
1st July 2017

Question 26.
Who is the head of the GST Council?
Answer:
Finance Minister

Question 27.
Which constitutional amendment is done to pass the GST bill?
Answer:
101 st

Question 28.
What type of goods are not covered under the GST bill?
Answer:
(i) Cooking gas
(ii) Liquor
(iii) Petrol

Question 29.
List the main categories of GST.
Answer:
(i) CGST
(ii) SGST
(iii) I GST

Question 30.
What is demonetisation?
Answer:
Demonetisation is the act of stripping a currency unit of its status as legal tender.

Question 31.
When did demonetisation take place in India?
Answer:
8th November, 2016

Question 32.
What was main motive behind demonetisation?
Answer:
To curb black money, terror funding and to stop the use of fake currency available in the market

Question 33.
When did demonetisation take place in India for the first time in history?
Answer:
In 1946

Question 34.
Which currency notes were affected due to demonetisation in November 2016?
Answer:
₹ 500 & ₹ 1,000 notes
(Liberalisation, Privatisation and Globalisation: An Appraisal)

Question 35.
Which currency notes were newly implemented after demonetisation in November 2016?
Answer:
X 200 & X 2,000 notes

Question 36.
What was the last date of tendering old currency?
Answer:
30th December, 2016

Question 37.
State one positive effect of demonetisation in India?
Answer:
Over fake currency