Tag: economics of planning

Questions Related to economics of planning

Select the correct statement/statements about the traits of 'imperative planning' from the given list. using the code given below:
1. Only quantitative targets are set as was the case in pre-reform India.
2. The planning process of the state economies were, generally, imperative.  

economics economics of development and planning economics of planning objectives of economic planning in india major economic problems

  1. Only 1

  2. Only 2

  3. I and 2

  4. Neither 1 nor 2

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Correct Option: D
Explanation:

India never followed imperative planning and its planning has been 'indicative' since India launched planning. Plannings of the 'State Economics' (Communist and Socialist economies) were always imperative in nature.

Consider the following statements about the nature of economic planning under the Planning Commission and select the correct one/ones using the code given below:
 I. It has been a process of socio-economic planning.
2. It has been inclusive of Gandhian Socialism. 

economics economics of development and planning economics of planning objectives of economic planning in india major economic problems

  1. Only I

  2. Only 2

  3. I and 2

  4. Neither I nor 2

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Correct Option: D
Explanation:

Indian planning has been a process of economic planning and had nothing to do with the 'social' aspects of the country. India follows 'systemic' approach to planning rather than 'normative'.

A measure of the physical quantity of the goods or services produced through a government scheme or programme is called ______________.

economics economics of development and planning economics of planning objectives of economic planning in india major economic problems

  1. Outlay

  2. Output

  3. Outcome

  4. Input

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Correct Option: B
Explanation:

A measure of the physical quantity of the goods or services produced through a government scheme or programme is called output.

Which of the following is not the part of the structure of the Financial System in India?

economics economics of development and planning economics of planning objectives of economic planning in india major economic problems

  1. Industrial Finance

  2. Agricultural Finance

  3. Government Finance

  4. Personal Finance

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Correct Option: D

State whether the following statements are True or False.
Indian planning is democratic in nature.

economics economics of development and planning economics of planning objectives of economic planning in india major economic problems

  1. True

  2. False

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Correct Option: A
Explanation:

India’s commitment to planned economic development is a reflection of our society’s determination to improve the economic conditions of our people and an affirmation of the role of the government in bringing about the growth performance through a variety of social, economic and institutional means. The ultimate objective of the Indian planning is to achieve broad based improvement in the living standard of society at large. Rapid growth is essential for expanding incomes and employment. It provides the required resources to finance programmes of social uplift.

The planning process in the industrial sector in India has assumed a relatively less important position in the nineties as compares to that in the earlier period. Which one of the following is not true in this regard ?

economics economics of development and planning economics of planning objectives of economic planning in india major economic problems

  1. With the advent of liberalisation, industrial investments/ development have largely been placed within the domain of private and multinational sectors.

  2. With markets assuming a central place, the role of central planning in many sectors has been rendered redundant.

  3. The focus of planning has shifted to sectors like human resource development infrastructure, population control and welfare.

  4. The nation's priorities have shifted away from industrial development to rural development.

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Correct Option: C
Explanation:

This has been the basic change in the process of planning during the reform era. Planning has not lost its relevance but it has gone for its definition as such.

The basic difference between imperative and indicative planning is that __________________.

economics economics of development and planning economics of planning objectives of economic planning in india major economic problems

  1. in the case of imperative planning market mechanism is entirely replaced by a command hierarchy, while in case of indicative planning . it is looked upon as a way to improve the functioning of market system.

  2. in the case of indicative planing there is no need to nationalise any industry.

  3. in the case of imperative planning all economic activities belong to public sector, while in the other type they belong to the private sector.

  4. it is easier to achieve targets in imperative type of planning.

Show answer
Correct Option: A
Explanation:

Planning processes of all the non-state Economies (i.e., either Communist or the Socialist economies ) did belong to the 'imperative' (or target) planning. Planning by the Mixed Economies are of 'indicative' type.

Inclination of the GoI towards 'indicative planning' means 
1. Lesser economic role for itself and broader economic space for the domestic and foreign private players.
2. Redefining the role of the State in the economic system.
3. 'Rolling back' of the State from the economy and going for 'strategic disinvestment'.
Select the correct code given below:

economics economics of development and planning economics of planning objectives of economic planning in india major economic problems

  1. 1 and 2

  2. 2 and 3

  3. 1 and 3

  4. 1, 2 and 3

Show answer
Correct Option: A
Explanation:

The things,which the GoI did in the name of following planning more inclined towards being 'indicative' was called 'rolling back' of the State (this is a word used by the 'critics ' of the government policy). The 'strategic disinvestment ' was part of it.

Select the correct ones related to the development model of India. using the code given below:
1. Governing Council of the NM Aayog is a better body than that of the National Development Council (NDC). 
2. In wake of the increased co-operative federalism the Twenty Point Programme (TTP) looks like it is losing the relevance.

economics economics of development and planning economics of planning objectives of economic planning in india major economic problems

  1. Only 1

  2. Only 2

  3. 1 and 2

  4. Neither 1 nor 2

Show answer
Correct Option: D
Explanation:

Governing Council does not only includes the CMs of states and Lt. Governors/ Chief Administrators of the UTs but it plays a more organic role in the decision making process of the Niti Aayog. Once the centrally sponsored schemes (CSSs1 have been restructured and high flexibility given to the states in their implementation the TPP looks an outdated programme.

Who among the following constitute the National Development Council? 

1. The Prime Minister
2. The Chairman, Finance Commission
3. Ministers of the Union Cabinet
4. Chief Ministers of the States
Select the correct answer using the code given below:

economics economics of development and planning economics of planning objectives of economic planning in india major economic problems

  1. 1, 2 and 3

  2. 1, 3 and 4

  3. 2 and 4

  4. 1, 2, 3 and 4

Show answer
Correct Option: B
Explanation:

The National Development Council or Rashtriya Vikas Parishad is the apex body for decision creating and deliberations on development matters in India, presided over by the Prime Minister

The Council comprises the Prime Minister, the Union Cabinate Ministers, Chief Ministers of all States or their substitutes, representatives of the Union Territories and the members of the NITI Aayog (Planning Commission).