Question

When the government is setting planning objectives it is guided by three major criteria that includes:

1.    Cost-benefit analysis, social profitability & accounting (social) prices
2.    Efficient allocation of resources, economic infrastructure & popular support.
3.    Impact on future levels of consumption, impact on income distribution & environmental impact

d.         Wage rates, capital costs & unemployment reduction

Answer 1

Amswer -

Option (c) is correct.

When the government is setting planning objectives it is guided by impact on future level of consumption,impact on income and distribution and environment impact.

Whatever planning government has to made today it will affect more in future.So before deciding any planning policy government has become assured that it will not adversely impact on future levels of consumption.In future people can enjoy same consumption level ,standard of living etc.Before adopting any planning strategy, government also ensures that atleast current level of distribution of income should be maintained after new planning strategy and no adverse impact on environment by new planning Strategy.Envoirnmental balance should be maintained for sustainable development of the country and healthy life of the people in the country.