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Refer to the… (Class 12 Economics SQP 2026-27, Q28)

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EconomicsCBSE Class 12 · Sample paper, session 2026-27 · 3 marks · Case-based

CBSE Class 12 Economics sample paper 2026-27: question 28

From the official CBSE sample question paper for 2026-27, section B, question 28, for 3 marks. Try it first; the hints and our step-by-step solution are below.

Q28 · 3 marks · Case-basedCompetency-basedLiberalisation, Privatisation and Globalisation: An Appraisal

Refer to the following text:
The Government of India, decided to reduce its role in Public Sector Undertakings (PSUs) to improve efficiency and reduce fiscal burden.
As per the policy decision, government companies are converted into private companies in two ways.
Answer the following questions in the light of given text and common understanding:

  1. (I)

    Identify the policy highlighted in the step initiated by the government.

    1 mark
  2. (II)

    Briefly explain the two ways in which government companies can be converted into private companies.

    2 marks

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2026-27.

Hints

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

Hint 1

Converting government companies into private ones is called what?

Hint 2

Can the government sell the whole company or only part of it?

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. (I) The policy is privatisation (reducing the government's role in PSUs).

    1 mark

  2. (II) Way 1: the government withdraws from the ownership and management of public sector companies (for example by disinvestment, selling part of its equity).

    1 mark

  3. (II) Way 2: outright sale of public sector companies to the private sector.

    1 mark

Answer: (I) Privatisation. (II) Government withdrawal from ownership and management, and outright sale of PSUs.

Where the marks are

  • Policy identified (1)
  • Two ways (1 + 1)

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 2026-27: 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.