planning economic development & five year plans section 1 MCQ Questions & Answers Detailed Explanation

Answer: (c)

Answer: (b)

The slogan of ‘poverty abolition’ was given by Indira Gandhi in 1971 and it was implemented during the Fifth Five Year Plan 1974–79.

Gandhi promised to reduce poverty by targeting the consumption levels of the poor and enact wide-ranging social and economic reforms.

• 2^nd plan - ‘Socialist pattern & life’
• 4^th plan - ‘Garibi Hatao’
• 6^th plan - ‘‘Rolling plan’ taken from Japan coined by Gunnar Myrdal.

Answer: (c)

Indicative planning is a form of economic planning implemented by a state in an effort to solve the problem of imperfect information in the market and mixed economies in order to increase economic performance.

Regarding indicative planning, the state sets broad parameters and goals for the economy and the targets to be achieved are broadly set by the state.

Answer: (b)

The Second Five Year Plan heralded in a true sense the Socialist Project of the then Prime Minister, Jawaharlal Nehru.

The economic policies of Nehru were heavily influenced by the erstwhile Union of Soviet Socialist Republics (USSR) which had followed the path of speedy industrialisation to expand the manufacturing base of its economy.

The Second Five Year Plan focused mainly on heavy industry as against the first plan which was essentially an agricultural plan. This was done to boost domestic production and manufacturing of goods.

The third Plan aimed to achieve self-sufficiency in food grains and increase agricultural production to meet the requirements of industry and exports.

Answer: (d)

The Government's objective of inclusive growth can be furthered by promoting self-help groups, promoting micro, small and medium enterprises and implementing the right to education.

This will improve employment opportunities, increase GDP etc.

Answer: (a)

Planning Commission has been replaced by an institution named NITI Aayog. In 2014, the Central Government led by Prime Minister Narendra Modi decided to wind down up the Planning Commission.

It was proposed to replace it with a more dynamic organisation that is more popular and connected to the times.