Question

Difficulty: EasyMeaning, Types, and Features of Economic Planning

During a national industrialization campaign, a government authority formulates a scheme that directly allocates specific physical quantities of raw materials, equipment, and manpower to achieve designated production targets in various sectors. Which type of economic planning is demonstrated in this scenario?

Physical planningAnswer
B
Financial planning
C
Indicative planning
D
Rolling planning

Answer

Physical planning

Physical planning directly quantifies and assigns real resources such as raw materials, machinery, and workers to specific production units to hit targeted physical output levels.

Step-by-Step Solution

1

Analyze the core resource allocation mechanism presented in the stem.

The scenario highlights direct allocation of real resources (raw materials, capital equipment, manpower) measured in physical quantities.

Identifying whether allocation is made in physical terms or monetary terms determines the planning category.

2

Distinguish between physical planning and other forms of planning.

Physical planning works directly with quantitative material balances and inputs, whereas financial planning uses monetary outlays.

This direct quantitative assignment of physical inputs defines physical planning.

Key Concept

Physical Planning vs Financial Planning

Estimated Time:45s

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Topics

Meaning, Types, and Features of Economic Planning