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All questions of Economic Planning for UPSC CSE Exam
Who is responsible for formulating the Five Year Plans in India?- a)Prime Minister of India
- b)Ministry of Finance
- c)NITI Aayog
- d)Planning Commission (now replaced by NITI Aayog)
Correct answer is option 'C'. Can you explain this answer?
Who is responsible for formulating the Five Year Plans in India?
a)
Prime Minister of India
b)
Ministry of Finance
c)
NITI Aayog
d)
Planning Commission (now replaced by NITI Aayog)
|
Vikram Mehta answered |
The Planning Commission was replaced by NITI Aayog in 2015 as the government's premier policy think tank responsible for formulating Five Year Plans.
What is the main objective of economic planning in a country?- a)Maximizing profits for businesses
- b)Promoting free-market competition
- c)Achieving balanced economic growth and development
- d)Eliminating taxation
Correct answer is option 'C'. Can you explain this answer?
What is the main objective of economic planning in a country?
a)
Maximizing profits for businesses
b)
Promoting free-market competition
c)
Achieving balanced economic growth and development
d)
Eliminating taxation
|
|
Vikram Mehta answered |
Economic planning is designed to achieve balanced growth and development by allocating resources effectively and prioritizing sectors that need support and development.
Which Five Year Plan is currently in operation in India?- a)First Five Year Plan
- b)Second Five Year Plan
- c)Twelfth Five Year Plan
- d)Fifteenth Five Year Plan
Correct answer is option 'C'. Can you explain this answer?
Which Five Year Plan is currently in operation in India?
a)
First Five Year Plan
b)
Second Five Year Plan
c)
Twelfth Five Year Plan
d)
Fifteenth Five Year Plan
|
Mira Choudhury answered |
Twelfth Five Year Plan in India
The current Five Year Plan in operation in India is the Twelfth Five Year Plan which covers the period from 2012 to 2017. It is the last Five Year Plan in India as the planning commission was replaced by NITI Aayog after its completion.
Key Objectives of the Twelfth Five Year Plan:
- Achieve inclusive growth and sustainable development
- Increase investment in infrastructure
- Improve agriculture productivity and rural development
- Enhance healthcare and education facilities
- Promote skill development and employment opportunities
- Strengthen social sector programs
Focus Areas of the Twelfth Five Year Plan:
- Infrastructure development
- Education and skill development
- Healthcare and sanitation
- Agriculture and rural development
- Sustainable development and environmental protection
Challenges faced during the Twelfth Five Year Plan:
- Slowdown in economic growth
- High inflation rates
- Fiscal deficit
- Unemployment
- Regional disparities
Achievements of the Twelfth Five Year Plan:
- Significant progress in infrastructure development
- Increase in literacy rates
- Reduction in poverty levels
- Improvement in healthcare facilities
- Boost in renewable energy projects
Overall, the Twelfth Five Year Plan aimed at achieving sustainable and inclusive growth for the country. It laid the foundation for several reforms and initiatives that would contribute to the overall development of India.
The process of economic planning in India is now based on which approach?- a)Top-down approach
- b)Bottom-up approach
- c)Mixed approach
- d)Random approach
Correct answer is option 'B'. Can you explain this answer?
The process of economic planning in India is now based on which approach?
a)
Top-down approach
b)
Bottom-up approach
c)
Mixed approach
d)
Random approach
|
|
Vikram Mehta answered |
The current approach to economic planning in India is the bottom-up approach, which involves active participation of states and local governments in the planning process.
Which of the following is NOT a characteristic of economic planning?- a)Decentralization of economic decision-making
- b)Allocation of resources based on priorities
- c)Setting specific targets and goals
- d)Adherence to market forces for resource allocation
Correct answer is option 'D'. Can you explain this answer?
Which of the following is NOT a characteristic of economic planning?
a)
Decentralization of economic decision-making
b)
Allocation of resources based on priorities
c)
Setting specific targets and goals
d)
Adherence to market forces for resource allocation
|
Raksha Ahuja answered |
Understanding Economic Planning
Economic planning involves the strategic allocation of resources to achieve specific goals and objectives within an economy. It is predominantly associated with planned economies or systems where government intervention is significant.
Characteristics of Economic Planning
- Decentralization of Economic Decision-Making
Economic planning often involves centralized decision-making; however, some plans may allow for decentralized approaches to empower local authorities.
- Allocation of Resources Based on Priorities
In economic planning, resources are allocated according to strategic priorities set by planners, ensuring that essential sectors receive adequate investment.
- Setting Specific Targets and Goals
A fundamental aspect of economic planning is the establishment of clear, measurable targets, enabling planners to track progress and adjust strategies accordingly.
Why Adherence to Market Forces is NOT a Characteristic
- Market Forces vs. Planning
In a planned economy, resource allocation is primarily determined by government directives rather than market forces. Market economies rely on supply and demand, where prices are set through competition, contrasting with the controlled environment of economic planning.
- Interventionist Approach
Economic planners intervene to correct market failures, ensure equity, and promote overall economic stability, which often contradicts the laissez-faire principles of market economies.
- Goal Orientation
Planning focuses on achieving specific socio-economic goals, rather than allowing market dynamics to dictate outcomes, which can lead to inefficiencies or inequities.
In summary, adherence to market forces for resource allocation is inconsistent with the principles of economic planning, making option 'D' the correct answer.
Economic planning involves the strategic allocation of resources to achieve specific goals and objectives within an economy. It is predominantly associated with planned economies or systems where government intervention is significant.
Characteristics of Economic Planning
- Decentralization of Economic Decision-Making
Economic planning often involves centralized decision-making; however, some plans may allow for decentralized approaches to empower local authorities.
- Allocation of Resources Based on Priorities
In economic planning, resources are allocated according to strategic priorities set by planners, ensuring that essential sectors receive adequate investment.
- Setting Specific Targets and Goals
A fundamental aspect of economic planning is the establishment of clear, measurable targets, enabling planners to track progress and adjust strategies accordingly.
Why Adherence to Market Forces is NOT a Characteristic
- Market Forces vs. Planning
In a planned economy, resource allocation is primarily determined by government directives rather than market forces. Market economies rely on supply and demand, where prices are set through competition, contrasting with the controlled environment of economic planning.
- Interventionist Approach
Economic planners intervene to correct market failures, ensure equity, and promote overall economic stability, which often contradicts the laissez-faire principles of market economies.
- Goal Orientation
Planning focuses on achieving specific socio-economic goals, rather than allowing market dynamics to dictate outcomes, which can lead to inefficiencies or inequities.
In summary, adherence to market forces for resource allocation is inconsistent with the principles of economic planning, making option 'D' the correct answer.
The idea of Five Year Plans in India was inspired by which country's model?- a)United States of America
- b)United Kingdom
- c)Soviet Union
- d)China
Correct answer is option 'C'. Can you explain this answer?
The idea of Five Year Plans in India was inspired by which country's model?
a)
United States of America
b)
United Kingdom
c)
Soviet Union
d)
China
|
|
Vikram Mehta answered |
The concept of Five Year Plans in India was inspired by the Soviet Union's economic planning model.
Which Five Year Plan is also known as the "Gadgil Yojana"?- a)Fourth Five Year Plan
- b)Fifth Five Year Plan
- c)Eighth Five Year Plan
- d)Tenth Five Year Plan
Correct answer is option 'A'. Can you explain this answer?
Which Five Year Plan is also known as the "Gadgil Yojana"?
a)
Fourth Five Year Plan
b)
Fifth Five Year Plan
c)
Eighth Five Year Plan
d)
Tenth Five Year Plan
|
|
Vikram Mehta answered |
The Fourth Five Year Plan (1969-1974) is also known as the "Gadgil Yojana" after D.R. Gadgil, the then-Deputy Chairman of the Planning Commission.
The concept of Five Year Plans was borrowed by India from which country?- a)China
- b)United Kingdom
- c)Germany
- d)Soviet Union
Correct answer is option 'D'. Can you explain this answer?
The concept of Five Year Plans was borrowed by India from which country?
a)
China
b)
United Kingdom
c)
Germany
d)
Soviet Union
|
|
Vikram Mehta answered |
India borrowed the concept of Five Year Plans from the Soviet Union.
The period of the Five Year Plan in India is:- a)2 years
- b)3 years
- c)4 years
- d)5 years
Correct answer is option 'D'. Can you explain this answer?
The period of the Five Year Plan in India is:
a)
2 years
b)
3 years
c)
4 years
d)
5 years
|
|
Vikram Mehta answered |
The Five Year Plans in India typically last for five years, during which development targets and goals are set.
Which of the following statements is true regarding the NITI Aayog?- a)It was established in 2015 to replace the Reserve Bank of India.
- b)It functions as the apex body for the planning process in India.
- c)It operates under the Ministry of Finance.
- d)It is responsible for conducting the national census.
Correct answer is option 'B'. Can you explain this answer?
Which of the following statements is true regarding the NITI Aayog?
a)
It was established in 2015 to replace the Reserve Bank of India.
b)
It functions as the apex body for the planning process in India.
c)
It operates under the Ministry of Finance.
d)
It is responsible for conducting the national census.
|
|
Vikram Mehta answered |
NITI Aayog serves as the premier policy think tank and the apex body for the planning process in India.
The process of economic planning involves:- a)Assessing current economic conditions, setting goals, and formulating strategies
- b)Privatizing all industries to promote competition
- c)Reducing government intervention in the economy
- d)Implementing policies without considering resource availability
Correct answer is option 'A'. Can you explain this answer?
The process of economic planning involves:
a)
Assessing current economic conditions, setting goals, and formulating strategies
b)
Privatizing all industries to promote competition
c)
Reducing government intervention in the economy
d)
Implementing policies without considering resource availability
|
|
Vikram Mehta answered |
Economic planning involves carefully assessing the current economic situation, setting specific goals, and formulating strategies to achieve those goals.
Which sector is often referred to as the "engine of economic growth" under economic planning?- a)Agricultural sector
- b)Industrial sector
- c)Service sector
- d)Defense sector
Correct answer is option 'B'. Can you explain this answer?
Which sector is often referred to as the "engine of economic growth" under economic planning?
a)
Agricultural sector
b)
Industrial sector
c)
Service sector
d)
Defense sector
|
|
Vikram Mehta answered |
The industrial sector is often considered the "engine of economic growth" as it contributes significantly to GDP and creates jobs.
Which sector receives the highest priority during economic planning?- a)Service sector
- b)Industrial sector
- c)Agricultural sector
- d)Defense sector
Correct answer is option 'C'. Can you explain this answer?
Which sector receives the highest priority during economic planning?
a)
Service sector
b)
Industrial sector
c)
Agricultural sector
d)
Defense sector
|
|
Vikram Mehta answered |
In most economic planning models, the agricultural sector often receives the highest priority as it supports a significant portion of the population and ensures food security.
Which of the following is an advantage of economic planning?- a)High level of competition leading to innovation
- b)Quick response to market changes
- c)Effective allocation of resources for development
- d)Minimal government intervention
Correct answer is option 'C'. Can you explain this answer?
Which of the following is an advantage of economic planning?
a)
High level of competition leading to innovation
b)
Quick response to market changes
c)
Effective allocation of resources for development
d)
Minimal government intervention
|
|
Vikram Mehta answered |
Economic planning allows for better coordination and allocation of resources, which can lead to more focused and effective development.
Which of the following is a measure to control inflation under economic planning?- a)Decreasing interest rates
- b)Increasing government spending
- c)Tightening monetary policy
- d)Encouraging borrowing
Correct answer is option 'C'. Can you explain this answer?
Which of the following is a measure to control inflation under economic planning?
a)
Decreasing interest rates
b)
Increasing government spending
c)
Tightening monetary policy
d)
Encouraging borrowing
|
|
Vikram Mehta answered |
To control inflation, economic planners often tighten monetary policy, which includes measures like increasing interest rates to reduce borrowing and spending.
Which of the following is NOT a factor considered during the process of economic planning?- a)Population growth
- b)Availability of resources
- c)Inflation rate
- d)Political stability
Correct answer is option 'C'. Can you explain this answer?
Which of the following is NOT a factor considered during the process of economic planning?
a)
Population growth
b)
Availability of resources
c)
Inflation rate
d)
Political stability
|
|
Vikram Mehta answered |
While inflation rate is an important economic indicator, it is not a factor directly considered during the process of economic planning. However, it may influence planning decisions indirectly.
The "Mahalanobis Model" is associated with which Five Year Plan in India?- a)First Five Year Plan
- b)Second Five Year Plan
- c)Third Five Year Plan
- d)Fourth Five Year Plan
Correct answer is option 'B'. Can you explain this answer?
The "Mahalanobis Model" is associated with which Five Year Plan in India?
a)
First Five Year Plan
b)
Second Five Year Plan
c)
Third Five Year Plan
d)
Fourth Five Year Plan
|
|
Vikram Mehta answered |
The "Mahalanobis Model" was used during the Second Five Year Plan (1956-1961) and was named after the renowned Indian statistician Prasanta Chandra Mahalanobis.
What is the primary focus of the agriculture sector under economic planning?- a)Export-oriented production
- b)Self-sufficiency in food production
- c)Heavy industrialization
- d)Promoting the service sector
Correct answer is option 'B'. Can you explain this answer?
What is the primary focus of the agriculture sector under economic planning?
a)
Export-oriented production
b)
Self-sufficiency in food production
c)
Heavy industrialization
d)
Promoting the service sector
|
|
Vikram Mehta answered |
Economic planning aims to achieve self-sufficiency in food production to ensure food security for the country's population.
"Growth with Social Justice" is a motto often associated with which Five Year Plan in India?- a)First Five Year Plan
- b)Eighth Five Year Plan
- c)Eleventh Five Year Plan
- d)Fifteenth Five Year Plan
Correct answer is option 'C'. Can you explain this answer?
"Growth with Social Justice" is a motto often associated with which Five Year Plan in India?
a)
First Five Year Plan
b)
Eighth Five Year Plan
c)
Eleventh Five Year Plan
d)
Fifteenth Five Year Plan
|
|
Vikram Mehta answered |
The Eleventh Five Year Plan (2007-2012) in India was associated with the motto "Growth with Social Justice."
Economic planning in India is based on which model?- a)Capitalist model
- b)Socialist model
- c)Mixed economy model
- d)Laissez-faire model
Correct answer is option 'C'. Can you explain this answer?
Economic planning in India is based on which model?
a)
Capitalist model
b)
Socialist model
c)
Mixed economy model
d)
Laissez-faire model
|
|
Vikram Mehta answered |
India follows a mixed economy model where both the public and private sectors play important roles in economic planning and development.
Chapter doubts & questions for Economic Planning - Lucent for GK 2025 is part of UPSC CSE exam preparation. The chapters have been prepared according to the UPSC CSE exam syllabus. The Chapter doubts & questions, notes, tests & MCQs are made for UPSC CSE 2025 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests here.
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