1. Assertion (A): Liberalisation means to reduce unnecessary restrictions and controls on business units imposed by government. Reason (R)...
Reason (R): Liberalisation was based on the assumption that market forces could guide the economy in
a more efficient manner than government control.
Codes:
a. Both (A) & (R) are true and (R) is the correct explanation of (A).
b. Both (A) & (R) are true but (R) is not the correct explanation of (A).
c. (A) is true but (R) is false.
d. (A) is false but (R) is true.
Answer: a
Explaination- Liberalisation means to reduce unnecessary restrictions and controls on business units imposed
by government. It means procedural simplification, relaxing trade and industry from unnecessary bureaucratic
hurdles. Prior to 1991, government has imposed several types of controls on Indian economy e.g., industrial
licensing system; price control, import livence, foreign exchange control etc. Economic reforms made an
attempt to reduce restrictions imposed on the economy.
2. Assertion (A): Privatisation means allowing the private sector to set up more and more of such
industries as were previously reserved for public sector.
Reason (R): Under it, existing enterprises of the public sector are either wholly or partially sold to private
sector.
Codes:
a. Both (A) & (R) are true and (R) is the correct explanation of (A).
b. Both (A) & (R) are true but (R) is not the correct explanation of (A).
c. (A) is true but (R) is false.
d. (A) is false but (R) is true.
Answer: A
Explaination: privatization of industries means opening the gates of public sector to private sector.
3. Assertion (A): Globalization means linking the economy of a country with the economies of other
countries by means of free trade, free mobility of capital and labour.
Reason (R): It also means inviting multinational corporations to invest in the nation.
Codes:
a. Both (A) & (R) are true and (R) is the correct explanation of (A).
b. Both (A) & (R) are true but (R) is not the correct explanation of (A).
c. (A) is true but (R) is false.
d. (A) is false but (R) is true.
Answer: A
4. Which of the following statement is incorrect:
a. 1938:‘National Planning Committee’ was established under the chairmanship of Jwahar Lal Nehru by
the Indian National Congress. Its recommendations could not be implemented because of the beginning of the
Second World War and changes in the Indian political situation.
b. 1944: ‘Gandhian Plan’ was given by Shriman Narayan Agarwal.
c. 1945: ‘People’s Plan’ was given by M N Roy.
d. 1950: ‘Sarvodaya Plan’ was given by J P Narayan. A few points of this plan were accepted by the
Government.
e. None of the above
Answer: E
5. Which one of the following is correct:
a. The Planning Commission was set – up on March 15, 1950 under the chairmanship of JL Nehru, by a
resolution of Union Cabinet.
b. It is an extra – constitutional, non – statutory body. (i.e., No provision in Constitution for its
formulation.)
c. It consists of Prime Minister as the ex – officio Chairman, one Deputy – Chairman appointed by the PM
and some full time members.
d. All of the above
Answer: d
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