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Social Science (087) — AI-generated practice question

AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.

Q1. [1] straightforward initial-understanding
Which of the following best explains why small manufacturers in India struggled to survive after the entry of large foreign companies? ((A)) The government stopped giving loans to small businesses ((B)) Small producers could not compete with cheaper, better-quality imported goods ((C)) Small manufacturers were banned from selling their products ((D)) Foreign companies bought out all small businesses in India
  1. A They chose to reduce their production voluntarily to focus on quality.
  2. B They could not compete with cheaper imported goods once trade barriers were removed.
  3. C The government banned them from selling in domestic markets.
  4. D MNCs directly bought out these small manufacturing units.
Generated by claude-sonnet-4-6 · 2026-06-26 13:23 · grounding rag
Model Answer

Answer: B

Small producers could not compete with cheaper imported goods once trade barriers were removed through liberalisation, allowing foreign goods to flood the Indian market.

Explanation

The textbook states that before 1991, trade barriers protected Indian producers from foreign competition. After liberalisation, barriers were removed and cheaper foreign goods entered Indian markets, making it difficult for small domestic producers to survive. Options A, C, and D are not supported by the textbook.

Previous-year CBSE Grade 10 board exam questions, organised by subject and chapter, each with a model answer — free to read and print.