In the context of economic reforms in India, the New Economic Policy of 1991 emphasised: MCQ with Answer and Explanation

In the context of economic reforms in India, the New Economic Policy of 1991 emphasised:
A. Complete isolation from the world economy
B. Liberalisation, privatisation and globalisation
C. Import substitution only
D. Licence-permit-quota raj
Answer: Option B
Solution (By JKSSB Mock Tests)
The 1991 economic reforms focused on Liberalisation, Privatisation and Globalisation (LPG) to open up the economy, reduce government control and integrate with the global economy.

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Practice More Economy Set 1 Questions

Question #1
The 'index of eight core industries' does not include which of the following?
A. Steel
B. Pharmaceuticals
C. Cement
D. Coal

Correct Answer: Option B


Explanation:
Pharmaceuticals is not included in the eight core industries.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Minimum Wages Act' applies to:
A. only factory workers
B. only informal sector
C. only government employees
D. scheduled employments including agricultural and industrial workers

Correct Answer: Option D


Explanation:
Minimum Wages Act applies to scheduled employments including agriculture and industry.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a cause of demand-pull inflation?
A. Increase in the cost of raw materials
B. Increase in money supply and aggregate demand
C. Supply chain disruptions
D. Rise in wages independent of productivity

Correct Answer: Option B


Explanation:
Demand-pull inflation arises when aggregate demand exceeds aggregate supply at full employment, often due to excess money supply or expansionary fiscal policy.

This question belongs to: Economy GK Economy Set 1