MCQ
upsc-p1-economy-reforms-lpg MCQ - Practice Questions with Answers
Solve 9 upsc-p1-economy-reforms-lpg questions for RAS/RPSC preparation.
Practice questions
Q1Arrange the following reform steps in chronological order, from earliest to latest: (a) Statutory status for SEBI (b) Enactment of FEMA (c) Enactment of the Competition Act (d) Enactment of the Insolvency and Bankruptcy Code Select the correct answer using the code given below.
Option A gives the correct sequence: SEBI received statutory status in 1992; FEMA was enacted in 1999; the Competition Act followed in 2002; and the Insolvency and Bankruptcy Code was enacted in 2016.
Q2Consider the following statements about the social-development outcomes of reforms: 1. Liberalisation automatically produces inclusive growth. 2. Services-led growth is generally less labour-absorbing than large-scale manufacturing. 3. Human capital is a complement to reform because it affects people's ability to use liberalised opportunities. 4. Coastal and urbanised States often benefited faster from trade, services and private investment. Select the correct answer using the code given below.
Statements 2, 3 and 4 are correct. Reform does not automatically ensure inclusive growth. Services-led expansion may absorb less labour than large-scale manufacturing. Education, health and skills determine access to new opportunities, while differences in infrastructure and urbanisation contributed to uneven regional gains.
Q3Consider the following statements about India's external-sector reforms: 1. India joined the WTO at its creation in 1995. 2. FEMA was enacted in 1999 and came into force in 2000. 3. India adopted full capital-account convertibility immediately after the 1991 crisis. 4. Foreign portfolio investment can expose India to global risk appetite and sudden outflows. Select the correct answer using the code given below.
Statements 1, 2 and 4 are correct. India joined the WTO in 1995. FEMA was enacted in 1999 and took effect in 2000, shifting the approach from control toward management. India did not adopt full capital-account convertibility; its approach remains calibrated. Portfolio flows can reverse with changes in global risk appetite.
Q4With reference to post-reform capital-market regulation, consider the following statements: 1. The SEBI Act, 1992 gave statutory status to the securities-market regulator. 2. Disclosure norms and investor protection remain necessary even after capital-market liberalisation. Which of the statements given above is/are correct?
Both statements are correct. The SEBI Act, 1992 supplied the statutory basis for securities-market regulation. Liberalisation does not remove the need for rules: disclosure, investor protection and market integrity are essential for efficient capital allocation.
Q5Consider the following statements about liberalisation and privatisation: 1. Opening a sector to private entry does not necessarily change the ownership of an existing public enterprise. 2. Every sale of government equity in a public enterprise transfers management control. 3. Liberalisation replaces prior permission with rule-based competition but retains public-interest regulation. 4. Globalisation concerns only imports and exports. Select the correct answer using the code given below.
Statements 1 and 3 are correct. Private entry can increase competition without selling an existing public enterprise. A minority disinvestment need not transfer management control; that feature belongs to strategic disinvestment. Liberalisation retains rule-based regulation. Globalisation also covers capital, technology, services, standards and production networks.
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6Arrange the following developments in chronological order, from earliest to latest: (a) Statement on Industrial Policy reducing licensing and public-sector reservation (b) India joining the WTO at its creation (c) Enactment of the FRBM Act (d) Introduction of GST under the GST laws Select the correct answer using the code given below.
7With reference to judicial review of economic policy, consider the following statements: 1. In BALCO Employees Union v. Union of India, the Supreme Court indicated that courts ordinarily do not substitute their view for the executive's disinvestment policy unless illegality, mala fides or constitutional violation is shown. 2. The post-1991 reform process made economic policy entirely non-justiciable. Which of the statements given above is/are correct?
8Match List I with List II: List I (Law) (a) FEMA, 1999 (b) Competition Act, 2002 (c) FRBM Act, 2003 (d) Insolvency and Bankruptcy Code, 2016 List II (Reform function) 1. Fiscal-discipline framework 2. Conduct-based scrutiny of anti-competitive practices 3. Insolvency resolution and capital reallocation 4. Foreign-exchange management and reporting Select the correct answer using the code given below.
9Consider the following statements about the constitutional setting of market reforms in India: 1. Article 19(1)(g) gives citizens freedom to practise a profession or carry on an occupation, trade or business. 2. Article 19(6) permits the State to reserve a trade, business, industry or service for itself. 3. Article 301 makes freedom of trade throughout India absolute. 4. Articles 38 and 39 place welfare and anti-concentration considerations alongside market freedom. Select the correct answer using the code given below.