| Which of the following are the Advantages of Economic Planning? |
| 1. It helps to correct and eliminate regional imbalances by focusing attention on the needs of backward areas; |
| 2. It promotes co-ordination between the different sectors of the economy; |
| 3. It is the only reliable way in which the State can try to remove economic disparities and establish an egalitarian society free of social and political tensions; |
A) 1, 2 and 3
B) 1 and 2
C) 1 and 3
D) Only 2
Correct Answer: C
Solution :
[c] [a] Advantages of Economic Planning are:| (i) It is only through economic planning that a nation can hope to improve the living standards of its people and to use its resources to optimum capacity; |
| (ii) Economic planning prevents lop-sided growth to national economy by selecting the most productive combination of projects and by judicious allocation of available resources; |
| (iii) It helps to correct and eliminate regional imbalances by focusing attention on the needs of backward areas; |
| (iv) It promotes co-ordination between the different sectors of the economy; |
| (v) It is the only reliable way in which the State can try to remove economic disparities and establish an egalitarian society free of social and political tensions; |
| (vi) It provides the people with the best criterion by which to judge the performance of their governments which, in a planned economy, have to work for achieving pre-determined targets and rates of growth. |
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