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Critically appraise… (Class 12 Economics SQP 2024-25, Q28A)

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EconomicsCBSE Class 12 · Sample paper, session 2024-25 · 3 marks · Short answer

CBSE Class 12 Economics sample paper 2024-25: question 28(A)

From the official CBSE sample question paper for 2024-25, section B, question 28(A), for 3 marks. Try it first; the hints and our step-by-step solution are below.

Q28(A) · 3 marks · Short answerLiberalisation, Privatisation and Globalisation: An Appraisal

Critically appraise the disinvestment policy initiated by the government during the reforms of 1991.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2024-25.

Hints

Open one hint at a time and try again before the next.

Hint 1

What was the aim of selling PSU shares?

Hint 2

Was the price fair, and how was the money used?

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Disinvestment (selling part of the government's equity in PSEs) aimed to improve financial discipline and help modernise these enterprises.

    1 mark

  2. The government exceeded its targets for raising money, but critics point out that PSE assets were undervalued, causing a significant loss to the government.

    1 mark

  3. Also, the proceeds were mostly used to cover shortfalls in government revenue rather than to develop PSEs or build social infrastructure.

    1 mark

Answer: Disinvestment aimed at efficiency and modernisation and met its targets, but assets were undervalued and proceeds were used to fill revenue gaps.

Where the marks are

  • Critical appraisal (marked as a whole, 3)

Revise the chapter

Practise this chapterBoard-style questions from Liberalisation, Privatisation and Globalisation: An Appraisal, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2024-25: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.