Class XII  Economic Reforms Since 1991 Test Paper Part I - 2021
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CASE STUDY-1 Read the following hypothetical text and answer the given questions: - We now look at some trends in the post-reform period. Data from Sri Lanka which started on a programme of economic reform in 1977 indicates that an increasing awareness on health issues is coupled with the growing incidence of diseases associated with stress, particularly those of the cardio-respiratory kind (Gunawardena 1995). A similar pattern is emerging in India with the advent of tropical diseases like falciparum malaria and Japanese B encephalitis, stress-and environment related cardiovascular complaints, respiratory and endemic intestinal problems as well as nervous disorders (Ghosh 1996). It is likely that with continued rural-urban migration, the mushrooming of unhealthy towns and cities and the degradation of the natural environment combined with jobs which increasingly concentrate workers in industries, Export Promotion Zones and sweat shops, the range of diseases and illnesses will increase. Women and their health will be adversely affected as they form the basis of the pool of cheap labour, essential for the growth of EPZs. 1. Sri Lanka which started on a programme of economic reform in………….( Choose the correct option) *
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2. A similar pattern is emerging in India with the growing incidence of diseases with stress , particularly those of the ………………………… kind.( Choose the correct option) *
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3. State whether the given statement is true or false It is likely that with continued rural-urban migration, the mushrooming of unhealthy towns and cities and the degradation of the natural environment combined with jobs which increasingly concentrate workers in industries. (Choose the correct option) *
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4. Read the following statements : Assertion (A) and Reason ( R) Assertion (A) Women and their health will be adversely affected Reason (R):as they form the basis of the pool of cheap labour, essential for the growth of Export Promotion Zones. *
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CASE STUDY -2 Read the following hypothetical text and answer the given questions While the beginning of the current economic liberalization policy in India could be traced to the period much earlier than the 1990s, the explicit acceptance and implementation of the economic liberalization program during mid-1991 by Indian government could be seenas the starting point of the new reform program, and its subsequent change of approach and priorities about its governance. It was based on the belief that economic globalization/liberalization worked toward the integration of national economies into the international economy through trade, direct foreign investment, short-term capital flows, international flow of workers and humanity, and flow of technology. But in the process of liberalizing the economy, the state’s role has transformed in prioritizing a strong military, police and legal structures, and functions to protect private property rights and ensure proper functioning of markets. If the markets do not exist in the areas of land, water, education, health care, social security, and so on, the state must take initiative in creating amarket. After creating such markets, the state should keep its activities to bare minimum without interfering with the functions of the market for it to perform efficiently .Such thinking based on Neoliberalism1(Neoliberalism refers to a political ideology that espouses economic liberalism as a means of promoting economic development and securing political liberty.) started occupying the minds, in a measured manner, in the policy circle worldwide during the 1970s, which led to a major shift in the political–economic practices, and started moving toward deregulation, privatization, and withdrawal of state from many areas of social security, for efficient governance, based on market economy. 1. liberalism as a means of promoting (Choose the correct option) *
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2. ……………… refers to a political ideology that espouses economic liberalism as a means of promoting economic development and securing political liberty. (Choose the correct option) *
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3. State whether the given statement is true or false While the beginning of the current economic liberalization policy in India could be traced to the period much earlier than the 1990s.  /   *
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4. Read the following statements Assertion (A) and Reason ( R) Assertion (A) started occupying the minds, in a measured manner, in the policy circle worldwide during the 1970s. Reason (R):which led to a major shift in the political–economic practices, and started moving toward deregulation, privatization, and withdrawal of state from many areas of social security, for efficient governance, based on the market economy. *
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CASE STUDY- 3 The reduction of fiscal deficits is an inalienable component normally included in the conditionality of Structural Adjustment Program (SAP)5 and consequently government expenditures must be cut to meet the targets for reducing fiscal deficits. There are several studies that have pointed out the declining trend in social sector expenditures. UNICEF’s Adjustment with a Human Face) was the first major study of SAPs to point out itsimpact on the vulnerable. This study has also shown that out of 78 countries that were implementing IMF-guided structural adjustment reforms, 91% had put a constraint on government expenditure, 83% had reduced the budget deficits, and 65% followed a policy of wage restraint. It has further noted a strong association between reduction in social sector expenditures and social indicators. Thus, reducing the public debt and stabilizing the economy were the main objectives of India liberalizing its economy in 1991. This path toward reducing the fiscal deficit has resulted in pruning down the expenditure in social sectors (which includes education). These measures in a longer run have affected the development and growth of social sectors by curtailing its new infrastructure and other resources. 1. The main objectives of India liberalizing its economy in 1991.( (choose the correct alternative)) *
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2. The reduction of …………… is an inalienable component normally included in the conditionality of the Structural Adjustment Program. (Choose the correct alternative) *
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3. State whether the given statement is true or false UNICEF’s Adjustment with a Human Face was the first major study of SAPs to point out its impact on the vulnerable. (Choose the correct alternative) *
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4. Read the following statements Assertion (A). Indian economy has become a more vibrant economy. Reason (R): Overall level of economic activity has trended up as indicated by GDP growth. Post LPG policies, the growth of GDP shot up to as high as 8 percent per annum *
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CASE STUDY -4 New Economic Policy of India was launched in the year 1991 under the leadership of P. V. Narasimha Rao. This policy opened the door of the India Economy for the global exposure for the first time. In this New Economic Policy P. V. Narasimha Rao government reduced the import duties, opened reserved sector for the private players, devalued the Indian currency to increase the export. This is also known as the LPG Model of growth. New Economic Policy refers to economic liberalisation or relaxation in the import tariffs, deregulation of markets or opening the markets for private and foreign players, and reduction of taxes to expand the economic wings of the country. Former Prime Minister Manmohan Singh is considered to be the father of New Economic Policy (NEP) of India. Manmohan Singh introduced the NEP on July 24,1991. Main Objectives of New Economic Policy – 1991, July 24 The main objectives behind the launching of the New Economic policy (NEP) in 1991 by the union Finance Minister Dr. Manmohan Singh are stated as follows: 1. The main objective was to plunge Indian Economy in to the arena of ‘Globalization and to give it a new thrust on market orientation. 2. The NEP intended to bring down the rate of inflation 1. New Economic Policy of India was launched in the year 1991 under the leadership of …( (choose the correct alternative) *
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2. ……………………………. is also known as the LPG Model of growth.( (choose the correct alternative) *
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3. State whether the given statement is true or false Former Prime Minister Manmohan Singh is considered to be the father of the New Economic Policy (NEP) of India. (choose the correct alternative) *
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4. Read the following statements Assertion (A). New Economic Policy is to expand the economic wings of the country. Reason (R): Due to economic liberalization or relaxation in the import tariffs, deregulation of markets or opening the markets for private and foreign players, and reduction of taxes   *
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CASE STUDY-5 Read the following hypothetical text and answer the given questions: The performance of Indian economy during the period of first seven five -year plans (1950-1990) was satisfactory if not very impressive. On the eve of independence, India was an industrially backward country, but during this period of first seven plans our industries became far more diversified, with the stress being laid on the public investments in the industrial sector. The policy of import substitution led to protection of the domestic industries against the foreign producers but we failed to promote a strong export surplus. Although public sector expanded to a large extent but it could not bring desired level of improvement in the secondary sector. Excessive government regulations prevented the natural trajectory of growth of entrepreneurship as there was no competition, no innovation and no modernization on the front of the industrial sector. Many Public Sector Undertakings (PSU’s) incurred huge losses due to operational inefficiencies, red- tapism, poor technology and other similar reasons. These PSU’s continued to function because it was difficult to close a government undertaking even it is a drain on country’s limited resources. On the Agricultural front, due to the measures taken under the Green Revolution, India more or less became self-sufficient in the production of food grains. So the need for reform of economic policy was widely felt in the context of changing global economic scenarios to achieve desired growth in the country. 1. Which of the following was not a reason for the public sector to play a major role in the initial phase of Indian Economic Planning? *
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2. The policy of .......................... led to the protection of the domestic industries against the foreign producers but we failed to promote a strong export surplus. ( fill up the blank with the correct alternative) *
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3. State whether the given statement is true or false: Mechanization of Indian agriculture was one of the causes of the Green Revolution in India. / *
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4. Read the following statements – Assertion (A) and Reason ( R) Assertion (A): Many public sector undertakings incurred huge losses due to operational inefficiencies. Reason (R): Red-tapism was one of the reasons for the continuation of such enterprises. Select the correct alternative from the following: Alternatives: *
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