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Answer the following. (Class 12 Economics 2026, Q33B)

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EconomicsCBSE Class 12 · Board exam 2026, set 58/1/1 · 6 marks · Long answer

CBSE Class 12 Economics 2026: question 33(B)

Set in the CBSE Class 12 board exam of 2026, paper 58/1/1, section B, question 33(B), for 6 marks. Try it first; the hints and our step-by-step solution are below.

Q33(B) · 6 marks · Long answerLiberalisation, Privatisation and Globalisation: An Appraisal

Answer the following.

  1. (i)

    ‘Strategic sale of a public sector undertaking and minority sale of their shares are methods of disinvestment.’ Defend or refute the given statement with valid argument.

    3 marks
  2. (ii)

    Discuss briefly, how bilateral trade agreements are different from multilateral trade agreements ?

    3 marks

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 58/1/1.

Hints

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

Hint 1

Does the government keep management control in each method?

Hint 2

Count the number of countries in each kind of agreement.

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 statement is defended. Both are methods of disinvestment, i.e. the government reducing its ownership of public sector enterprises to raise resources, bring in private participation and improve efficiency.

    1 mark

  2. (i) In a strategic sale, a large stake in the PSU is sold to a private buyer along with management control. In a minority sale, only a small part of the shares is sold to the public or institutions, and the government keeps control.

    2 marks

  3. (ii) A bilateral trade agreement is an agreement between two countries for the exchange of goods and services, with terms (tariff cuts, quotas) applying only to those two.

    1½ marks

  4. (ii) A multilateral trade agreement is one among more than two countries (e.g. under the WTO), with the same terms applying to all members.

    1½ marks

Answer: (i) Defended: both are disinvestment methods (strategic sale transfers control; minority sale keeps government control). (ii) Bilateral agreements involve two countries; multilateral ones involve more than two.

Where the marks are

  • Disinvestment defended with both methods explained (3)
  • Bilateral agreement (1½)
  • Multilateral agreement (1½)

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 paper2026 board paper, set 58/1/1: 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.