Question

1. Explain different types of economies ?
2. Distinguish b/w objectives of planning & objectives of plan ?
3. Distinguish b/w market & centrally planned economy ?

Answer 1

Dear student,

2. The differences between planning objectives and objectives of plan are:

* Planning objectives are long term while objectives of plan are short term.
* Planning objectives aims at structural changes while objectives of plan aims at quantitative aspect.
* Planning objectives are general goals while objectives of plan are specific goals.

3. The differences between market and centrally planned economy are:

* In centrally planned economy factors of production are public ally owned, while in market economy factors of production are privately owned.
* The motive of centrally planned economy is social welfare while that of market economy is profit.
* The production in centrally planned economy is governed by government plan while in market economy it is governed by price mechanism.

Regards