Economy, asked by hassan9912, 1 year ago

Explain the meaning of planning as an instrument of resource allocation. why is there a need for planning in the development process?

Answers

Answered by prince8292
3
Planning can be defined as a consciously directed activity with predetermined goals and predetermined means to carry them out. It is an instrument or technique or mechanism whereby the use pattern of resources is carried out. Two basic elements of planning are (i) the goals and (ii) the means.

(i)In a plan there may be one or more goals. In case there are many goals, they need to be placed in order of their importance to the economy.

(ii)The means are broadly constituted of two elements: policies and instruments.

The policies describe the outlines of actions for the fulfillment of plan goals.

The instruments may be defined as the qualitatively and quantitatively defined means of action by which it is intended to achieve the plan goals. These instruments are the means by which planned resources are matched with planned requirements.

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