In the context of economic planning, indicative planning is characterised by: MCQ with Answer and Explanation

In the context of economic planning, indicative planning is characterised by:
A. Only private sector planning
B. Setting targets and providing incentives without compulsion
C. Absence of any targets
D. Complete government control over all sectors
Answer: Option B
Solution (By JKSSB Mock Tests)
Indicative planning involves setting broad targets and providing incentives and information to guide private sector decisions rather than imposing compulsory directives.

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Practice More Economy Set 1 Questions

Question #1
The 'Global Competitiveness Report' is published by:
A. IMF
B. World Economic Forum
C. UNCTAD
D. World Bank

Correct Answer: Option B


Explanation:
The Global Competitiveness Report is published by the World Economic Forum.

This question belongs to: Economy GK Economy Set 1
Question #2
In the context of economic reforms, 'Disinvestment' refers to:
A. Sale of government equity in public sector enterprises
B. Nationalisation of private companies
C. Complete closure of all PSUs
D. Increase in government investment in PSUs

Correct Answer: Option A


Explanation:
Disinvestment involves the sale of government-held shares in public sector enterprises to private entities or the public, reducing government ownership.

This question belongs to: Economy GK Economy Set 1
Question #3
In the Keynesian model, the consumption function is given by C = a + bY, where 'b' represents:
A. Autonomous consumption
B. Marginal propensity to save
C. Marginal propensity to consume
D. Average propensity to consume

Correct Answer: Option C


Explanation:
In the consumption function C = a + bY, 'a' is autonomous consumption and 'b' is the marginal propensity to consume (MPC).

This question belongs to: Economy GK Economy Set 1