In the context of economic planning, indicative planning is characterised by:
A. Setting targets and providing incentives without compulsion
B. Absence of any targets
C. Complete government control over all sectors
D. Only private sector planning
Answer: Option A
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.
Explanation:
In a planned (command) economy, the central authority plans and allocates resources according to predetermined objectives rather than market signals.
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