To get more videos of all subjects

Like
Share
Subscribe
(Solution of all type1 mark questions)
DOWNLOAD APP 1 MARKS SOLUTION
FROM PLAY STORE ORGANISER
https://play.google.com/store/apps/details?i
LINK -
d=com.theappsstation.android5e9d43ff345f2
(Content in app will be available from 1st February 2021)
 Join 1 Marks Family (Like, Follow and Subscribe)
 1 Marks Solution: www.1markssolution.com
YouTube: 1 Marks Solution
 Contact: +91-9662592407 +91-9451927636
 Instagram: 1 Marks Solution
email: 1markssolution@gmail.com
 Blog: https://1markssolution.blogspot.com/
 Twitter: @Onemarks1
 FB Page & FB Group: 1 Marks Solution
 Founder: Dr. Asad, Lucknow

Case Study & Assertion/Reason
ECONOMICS CLASS 12
New Economic Policy - 1991
ONE MARKS SOLUTION
Presented by : Ms. SHILPI TANEJA
HOLY PUBLIC SCHOOL, GREATER NOIDA
SESSION’S VIDEO LINK - https://youtu.be/ohNPZGIUXHw
 ASSERTION AND REASON (1)
 (A):In 1991, India met with an economic crisis relating to its
internal debt.
 (R): The origin of the financial crisis can be traced from the
inefficient management of the Indian economy in the 1980s

a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A).
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
d. Assertion (A) is false but Reason (R) is true.
 ASSERTION AND REASON (2)
 (A):Indiaannounced the New Economic Policy (NEP).
 (R): India received $7 billion as loan to manage the
financial crisis from IMF and World Bank (IBRD).

a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A).
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is
the correct explanation of Assertion (A).
 ASSERTION AND REASON (3)
 (A): The reform policies introduced in and after 1991 removed
many industrial and licensing restrictions.
 (R): Rules and laws which were aimed at regulating the
economic activities became major hindrances in growth and
development.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A).
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is
the correct explanation of Assertion (A).
 ASSERTION AND REASON (4)
 (A): Devaluation as a foreign exchange reform set the tone to
free the determination of rupee value in the foreign exchange
market from government control.
 (R): Devaluation caused an increase in the outflow of foreign
exchange.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A).
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
c. Assertion (A) is true but Reason (R) is false.
 ASSERTION AND REASON (5)
 (A): Import licensing was abolished for all industries as
a measure of “Quantitative Restriction”.
 (R): Quantitative Restriction on imports was used to
protect domestic industries.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A).
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
d. Assertion (A) is false but Reason (R) is true.
 ASSERTION AND REASON (6)
 (A):Many of these profitable PSEs were originally formed during the
1950s and 1960s when self-reliance was an important element of
public policy.
 (R): Privatisation of the public sector enterprises by selling off part
of the equity of PSEs to the public is known as disinvestment.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A).
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
b. Both Assertion (A) and Reason (R) are true and Reason (R) is
not the correct explanation of Assertion (A).
 ASSERTION AND REASON (7)
 (A): In outsourcing, a company hires regular service
like legal, security, advertisement from internal
sources.
 (R): Outsourcing is essential for Globalisation.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A).
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
d. Assertion (A) is false but Reason (R) is true.
 ASSERTION AND REASON (8)
 (A):GATT was created to administer all multilateral trade
agreements by providing equal opportunities to all countries
in the international market for trading purposes.
 (R): GATT took its inspiration from WTO for its formation.

a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A).
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
c. Assertion (A) is true but Reason (R) is false.
 ASSERTION AND REASON (9)
 (A): Scholars are critical of India being a member of the
WTO.
 (R): A major volume of international trade occurs
among the developed nations.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A).
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is
the correct explanation of Assertion (A).
 ASSERTION AND REASON (10)
 (A):During the reform period, the growth of agriculture
improved.
 (R): The growth in service sector during that time assisted in
a rapid growth in GDP on a continual basis for two decades.

a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A).
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
d. Assertion (A) is false but Reason (R) is true.
 ASSERTION AND REASON (11)
 (A): FDI and FII declined from 1990-91 to 2017-2018.
 (R):India is turned a successful exporter of auto parts,
engineering goods, IT software and textiles in the
reform period.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A).
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
c. Assertion (A) is true but Reason (R) is false.
 ASSERTION AND REASON (12)
 (A): During the reform period,Industrial growth
recorded a slowdown.
 (R):Demand of industrial products decreased during
the reforms age.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A).
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is
the correct explanation of Assertion (A).
 ASSERTION AND REASON (13)
 (A): Tax incentives are provided to foreign investors which
further reduced the scope for raising tax revenues.
 (R):This has a negative impact on developmental and
welfare expenditures of the country.

a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A).
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
b. Both Assertion (A) and Reason (R) are true and Reason (R) is
not the correct explanation of Assertion (A).
 ASSERTION AND REASON (14)
 (A):The government borrows only from banks to finance
the deficit caused.
 (R): Deficit is caused whenexpenditure is more than
income.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A).
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
d. Assertion (A) is false but Reason (R) is true.
 ASSERTION AND REASON (15)
 (A):Stabilisation measures are short-term measures, intended
to correct some of the weaknesses that have developed in
the balance of payments.
 (R): there was a need to maintain sufficient foreign exchange
reserves and keep the rising prices under control.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A).
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
b. Both Assertion (A) and Reason (R) are true and Reason (R) is
not the correct explanation of Assertion (A).
 CASE STUDY / REPORT BASED (1)
REPORT-1
 CASE STUDY / REPORT BASED (1)
 ANSWER THE FOLLOWING QUESTIONS

 1. When was NEP policy introduced?

 Answer: NEP was introduced in 1991.

 2. What was the main need to introduced NEP?

 Answer: Terms and conditions of IMF and world
bank stressed upon introduction of NEP in India.
 CASE STUDY / REPORT BASED (1)
 ANSWER THE FOLLOWING QUESTIONS

 3. Explain any two measures of NEP.

 Answer: Stablisation measures and structural reforms.

 4. What was the reason behind fall in foreign exchange

reserves in India?
 Answer: Our dependence upon Imports and less
exports led to decrease in foreign exchange reserves.
 CASE STUDY / REPORT BASED (2)
REPORT 2
 CASE STUDY / REPORT BASED (2)
 ANSWER THE FOLLOWING QUESTIONS

 1. What do you observe by the above graph?

 Answer: We see that the contribution of agriculture constantly
decreased, service sector increases where as industrial sector
initially increased and decreased in last few years too.

 2. What can be the probable reason of decline in agriculture

sector?
 Answer: Migration of the workforce from agriculture to industrial
and service sector.
 CASE STUDY / REPORT BASED (2)
 ANSWER THE FOLLOWING QUESTIONS

 3. What was the reason behind the instant development of

service sector after 1991?
 Answer: Introduction of LPG was the main cause of
development of service sector.

 4. What was the percentage share of the three sectors in 2013-

2014?
 Answer: Agriculture -18%, Industrial sector-24%, Service sector-
52%.
 CASE STUDY / REPORT BASED (3)
REPORT 3
 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
 3. It intended to move towards higher economic growth
rate and to build sufficient foreign exchange reserves.
 CASE STUDY / REPORT BASED (3)
REPORT 3
 4. It wanted to achieve economic stabilization and to
convert the economy into a market economy by
removing all kinds of un-necessary restrictions.
 5. It wanted to permit the international flow of goods,
services, capital, human resources and technology,
without many restrictions.
 6. It wanted to increase the participation of private
players in the all sectors of the economy. That is why the
reserved numbers of sectors for government were
reduced. As of now this number is just 2.
 CASE STUDY / REPORT BASED (3)
 ANSWER THE FOLLOWING QUESTIONS:

 1. Who launched NEP and when?

 Answer: Mr. Manmohan Singh launched NEP in July 1991.

 2. How did LPG contributed to betterment of private sector?

 Answer: wanted to increase the participation of private players
in the all sectors of the economy. That is why the reserved
numbers of sectors for government were reduced. As of now
this number is just 2.
 CASE STUDY / REPORT BASED (3)
 ANSWER THE FOLLOWING QUESTIONS:

 3. What was the main objective of NEP?

 Answer: The NEP intended to bring down the rate of
inflation.

 4. Explain Globalization.
 Answer: It refers to removing of the trade barriers and
ensuring free flow of goods,services and capital flow
across the world.
 CASE STUDY / REPORT BASED (4)
 REPORT 4
 Increase in Equity Limit of Foreign Investment:
 Equity limit of foreign capital investment has been raised
from 40% to 100% percent. In 47 high priority industries
foreign direct investment (FDI) to the extent of 100% will
be allowed without any restriction. In this regard Foreign
Exchange Management Act (FEMA) will be enforced.
 If the Indian economy is shining at the world map
currently, its sole attribution goes to the implementation
of the New Economic Policy in 1991.
 CASE STUDY / REPORT BASED (4)
 ANSWER THE FOLLOWING QUESTIONS

 1. List of Sectors reserved for Public Sectors in India

 Answer: Railways and atomic energy

 2. Indian Government repay the External Debt by

Printing New Currency? True/False.
 Answer: False
 CASE STUDY / REPORT BASED (4)
 ANSWER THE FOLLOWING QUESTIONS

 3. What was the changed limit of FDI?

 Answer: In high priority industries foreign direct
investment (FDI) to the extent of 100% will be allowed
without any restriction.

 4. What is disinvestment?
 Answer: When government sell its shares of PSU’S to
private sector.
 CASE STUDY / REPORT BASED (5)
 REPORT 5
 The industrial sector became well diversified by 1990,
largely due to public sector. It was no longer restricted to
cotton textiles and jute. It also included engineering goods
and a wide range of consumer goods. The industrial sector
increased in the period from 11.8 % in 1950- 51 to 24.6 in
1990 – 91. This rise in industry’s share of GDP is an
important indicator of development. It gave opportunities to
people with small capital to get into business. New
investment opportunities helped in generating more
employment. It promoted growth with equity.
 CASE STUDY / REPORT BASED (5)
 ANSWER THE FOLLOWING QUESTIONS
 1. After independence the number of industrial policies
declared till now are:
 (a) 8
 (b) 10
 (c) 6
 (d) 5

 Answer: (c) 6
 CASE STUDY / REPORT BASED (5)
 ANSWER THE FOLLOWING QUESTIONS
 2. “Small capital to get into business “ in the above case
refers to an investment in the fixed capital up to Rs.
____________.
 (a) Rs. 5 Crore
 (b) Rs. 15 Crore
 (c) Rs. 1 Crore
 (d) Rs. 10 Lakh

 Answer: (a) Rs. 5 Crore

 CASE STUDY / REPORT BASED (5)
 ANSWER THE FOLLOWING QUESTIONS
 3. Growth with equity is ____________.
 (a) To ensure Social Justice
 (b) To ensure equality
 (c) Rural Development
 (d) Urban Development

 Answer: (a) To ensure Social Justice

 CASE STUDY / REPORT BASED (5)
 ANSWER THE FOLLOWING QUESTIONS
 4. The industrial sector got well diversified by 1990, due
to ____________.
 (a) FDI
 (b) Public Sector
 (c) All of the Above
 (d) Private Sector

 Answer: (b) Public Sector

 CASE STUDY / REPORT BASED (6)
 REPORT 6
 Developed countries have been trying to pursue
developing countries to liberalize the trade and allow
more flexibility in business policies to provide equal
opportunities to multinational firms in their domestic
market. International Monetary Fund (IMF) and World
Bank helped them in this endeavour. Liberalization
began to hold its foot on barren lands of developing
countries like India by means of reduction in excise
duties on electronic goods in a fixed time frame.
 CASE STUDY / REPORT BASED (6)
 REPORT 6
 Indian government did the same and liberalized the
trade and investment due to the pressure from World
Trade Organization. Import duties were cut down phase-
wise to allow MNC’s operate in India on equality basis.
As a result globalization has brought to India new
technologies, new products and also the economic
opportunities.
 CASE STUDY / REPORT BASED (6)
 ANSWER THE FOLLOWING QUESTIONS
 1. ____________ facilitates International Trade through removal of
tariffs as well as non tariff barriers
 Answer: WTO

 2. Why was Indian economy liberalized in 1991?
 Answer: BOP crisis

 3. Trade liberalization benefits developed countries more than
developing economies. (True / False)
 Answer: True
 CASE STUDY / REPORT BASED (6)
 ANSWER THE FOLLOWING QUESTIONS
 4. India had compulsion to introduce reforms as dictated
by:
 (a) World Bank
 (b) IMF
 (c) Both a and b
 (d) None of the above

 Answer: (c) both a and b

Case Study & Assertion/Reason
ECONOMICS CLASS 12
New Economic Policy - 1991
ONE MARKS SOLUTION
Presented by : Ms. SHILPI TANEJA
HOLY PUBLIC SCHOOL, GREATER NOIDA
SESSION’S VIDEO LINK - https://youtu.be/ohNPZGIUXHw
 Join 1 Marks Family (Like, Follow and Subscribe)
 1 Marks Solution: www.1markssolution.com
YouTube: 1 Marks Solution
 Contact: +91-9662592407 +91-9451927636
 Instagram: 1 Marks Solution
email: 1markssolution@gmail.com
 Blog: https://1markssolution.blogspot.com/
 Twitter: @Onemarks1
 FB Page & FB Group: 1 Marks Solution
 Founder: Dr. Asad, Lucknow

 To get more videos of all subjects
Like
Share
Subscribe
(Solution of all type1 mark questions)
DOWNLOAD APP 1 MARKS SOLUTION
FROM PLAY STORE ORGANISER
https://play.google.com/store/apps/details?i
LINK -
d=com.theappsstation.android5e9d43ff345f2
(Content in app will be available from 1st February 2021)