The basic difference between imperative and indicative planning is that :

A) It is easier to achieve targets in imperative type of planning.

B) In the case of imperative planning, all economic activities belong to public
sector, while in the other type they belong to the private sector.


C) In the case of imperative planning, the market mechanism is entirely replaced
by a command hierarchy, while in the case of indicative planning, it is looked
upon as a way to improve the functioning of the market system.


D) In the case of indicative planning, there is no need to nationalise any industry.

Correct answer:
C) In the case of imperative planning, the market mechanism is entirely replaced
by a command hierarchy, while in the case of indicative planning, it is looked
upon as a way to improve the functioning of the market system.



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