Question

Define or explain the concepts:
Economic planning.

Answer 1

Economic planning is often regarded as a mechanism for the proper allocation of resources in an efficient manner. It helps to achieve consistency among different economic objectives. It helps to attain steady economic development in a free market economy, to remove unemployment, poverty, inequalities among people, to provide infrastructural facilities such as banking, power, water, transport, and communications. The main objective of economic planning is maximum social welfare.