Q. Which of the following is/are features of indicative planning?
1.Most of the mixed economies were following the indicative planning.
2.It discourages market forces.
3.It sets numerical targets.
Select the correct option from below given codes:
Answer: B
Notes:
Explanation: The identifying features of indicative planning may be summed up as under:
(i) every economy following the indicative planning were mixed economies.
(ii) unlike a centrally planned economy (countries following imperative planning) indicative planning works through the market (price system) rather than replaces it.
(iii) side by side setting numerical/quantitative targets (like the practice in the imperative planning) a set of economic policies of indicative nature is also announced by the economies to realize the plan targets.
(iv) the indicative nature of economic policies, which are announced in such planning, basically encourage or discourage the private sector in its process of economic decision making.
Source: Ramesh Singh
