Economic Planning Fundamentals Quiz

The fundamental purpose of economic life is the satisfaction of human wants, which are unlimited. The challenge arises from the fact that economic resources are limited (scarce) in relation to the demands for their alternative uses.

The primary economic problem is the allocation of scarce resources to satisfy human wants in a manner that brings maximum satisfaction. It entails the careful allocation of limited resources to achieve the highest level of satisfaction.

According to B.C. Tandon, economic planning means the arrangement of scarce resources in such a way that the satisfaction yielded by them is maintained at an optimum level. L. Robbins defines planning as acting with a purpose and making choices, with choice being the essence of economic activity.

<p>The term 'planning' in the context of economic resources involves the careful thought-out rational arrangement of resources to achieve a pre-determined end, and the element of choice between scarce means of achieving that end.</p> Signup and view all the answers

<p>Different writers like W.A. Lewis, Jan Tinbergin, Ragnar Nurkse, and others have defined 'planning' in the economic context in various ways.</p> Signup and view all the answers