Reasons for development planning, Microeconomics

Reasons for development planning:

To maximize the utilization of economic resources: The resources of any nation are not always enough for her use. In this wise, resources must be allocated in such a way that they achieve maximum utilization of them.It is through the proper allocation of their resources that nations can accelerate their pace of economic development.

To correct the imperfection of the market system – The market system in reality is not perfect and therefore allocation of resources which occur under perfect competition model does not happen. There is therefore the need to interfere to ensure efficient allocation of resources

To ensure balanced growth: planning may be used to ensure balanced growth for all sectors of the economy.By this there will be uniform growth and provision of complementary services and intra sectoral linkages.

Posted Date: 1/3/2013 1:07:51 AM | Location : United States







Related Discussions:- Reasons for development planning, Assignment Help, Ask Question on Reasons for development planning, Get Answer, Expert's Help, Reasons for development planning Discussions

Write discussion on Reasons for development planning
Your posts are moderated
Related Questions
How solve central problem of economy in mixed economic system?


how does utility figure in the analysis of consumer demand

Show that when a plane wave is transmitted through a thin lens of focal length f in the direction parallel to the optical axis of the lens, its converted into a paraboloid wave (th

calculate point elasticity of demand function Q=10-2p for decrease in price from Rs3 to Rs2

1. Suppose the wage rate is w = 1. An agent is working 6 hours per day and consumes 5 units of goods per day. Suppose that the agent claims to be indifferent between his current


What is an optimization in the methods of mathematics of modern economics? Optimization is a basic tool for the development of modern microeconomics analysis. Many of economic

a)  Joan's utility function can roughly be estimated as : U = 60Q 1 3/4 Q 2 2/3 She chooses from two composite commodities Q 1 and Q 2 whose prices per unit are kshs 20

Fiat money is what is regular in modern economic systems.  Fiat money is money that is described as legal tender by either a government or some organization with the authority to e