Q. Which of the following is/are features of “indicative planning”?
1.Every economy following the indicative planning was mixed economies.
2.Economic policies of indicative nature are announced by the economies to realize the plan numerical/quantitative targets.
3.It works through the market price system.
Select the correct answer from below given codes:
Answer: C
Notes:
Explanation: The identifying features of indicative planning may be summed up as under:
- Every economy following the indicative planning was mixed economies.
- Unlike a centrally planned economy (countries following imperative planning) indicative planning works through the market (price system) rather than replaces it.
- Side by side setting numerical/quantitative targets (similar to 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.
- The indicative nature of economic policies, which are announced in such planning, basically encourages or discourages the private sector in its process of economic decision making.
Source: Ramesh Singh
