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Page 1 CPT Section C General Economics Chapter 7 Unit 2 Dr C.Anirvinna Page 2 CPT Section C General Economics Chapter 7 Unit 2 Dr C.Anirvinna ? Multiple Choice Questions Page 3 CPT Section C General Economics Chapter 7 Unit 2 Dr C.Anirvinna ? Multiple Choice Questions a) Relaxation in socio and economic polices b) Relaxation in political polices c) Relaxation in cultural polices d) Relaxation in Environmental polices Answer (a) Page 4 CPT Section C General Economics Chapter 7 Unit 2 Dr C.Anirvinna ? Multiple Choice Questions a) Relaxation in socio and economic polices b) Relaxation in political polices c) Relaxation in cultural polices d) Relaxation in Environmental polices Answer (a) Answer (b) d) Transfer of assets from corporate to government c) Transfer of assets from corporate to public b) Transfer of assets from public to private a) Transfer of assets from people to governement Page 5 CPT Section C General Economics Chapter 7 Unit 2 Dr C.Anirvinna ? Multiple Choice Questions a) Relaxation in socio and economic polices b) Relaxation in political polices c) Relaxation in cultural polices d) Relaxation in Environmental polices Answer (a) Answer (b) d) Transfer of assets from corporate to government c) Transfer of assets from corporate to public b) Transfer of assets from public to private a) Transfer of assets from people to governement a) • Franchising b) • Leasing c) • Contracting and divesture d) • All the above Answer • (d)Read More
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FAQs on MCQ - Liberalization, Privatization and Disinvestment - Business Economics for CA Foundation
| 1. What is liberalization and how does it relate to the CA Foundation exam? |  |
Ans. Liberalization refers to the process of relaxing government regulations and controls in the economy, allowing for more freedom and competition. In the CA Foundation exam, liberalization is an important topic in the subject of Economics. Students are expected to understand the concept, its impact on various sectors of the economy, and the role it plays in promoting economic growth.
| 2. What is privatization and why is it relevant to the CA Foundation syllabus? | |
Ans. Privatization refers to the transfer of ownership and control of public sector enterprises to private entities. It is an important concept in the CA Foundation syllabus, particularly in the subject of Business Economics. Students are required to understand the reasons for privatization, its advantages and disadvantages, and the impact it has on the economy and society.
| 3. What is disinvestment and how is it connected to the CA Foundation course? | |
Ans. Disinvestment refers to the sale of government-owned assets, such as shares in public sector enterprises, to private entities or the general public. In the CA Foundation course, disinvestment is a key topic in the subject of Business Economics. Students need to have a clear understanding of the reasons for disinvestment, its objectives, methods, and the implications it has for the government and the economy.
| 4. How does liberalization, privatization, and disinvestment contribute to economic growth? | |
Ans. Liberalization, privatization, and disinvestment are all measures aimed at promoting economic growth. Liberalization fosters competition, encourages foreign investment, and enhances efficiency in the economy. Privatization transfers state-owned enterprises to more efficient private entities, leading to improved productivity and profitability. Disinvestment helps the government raise funds for development projects and reduces its financial burden. Together, these measures create a favorable environment for economic growth and development.
| 5. What are the challenges and criticisms associated with liberalization, privatization, and disinvestment? | |
Ans. While liberalization, privatization, and disinvestment have proven to be beneficial in many cases, they also face challenges and criticisms. Some argue that these measures lead to income inequality, job losses, and exploitation by private entities. Additionally, there may be concerns about the government losing control over strategic sectors and essential services. It is important for CA Foundation students to be aware of these challenges and criticisms to have a comprehensive understanding of the subject.
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