Consider the following about imperative planning This planning process is followed by socialist econ...........

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Consider the following about imperative planning.

This planning process is followed by socialist economies.
Economic planning decisions are made through a central planning authority instead of a market system.
This process assumes that state and non-state actors have equitable control over economic resources.

Select the correct answer using the codes below.

1 and 2 only

3 only

2 and 3 onl

1, 2 and 3

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Explanation:

In this system, allocation of resources, the mix of output and the distribution of output among the people (i.e., ‘What, How and For Whom’ problems) are determined centrally in accordance with the predetermined plans and targets. Administrative control and regulation from the central planning authority flows in all directions. Because of control over the available resources of the country by the state, resources are allocated in such a way that production becomes maximum, people get goods and services in fixed quantities at fixed prices, and welfare of the nation gets maximized. Thus, communist China was the purest example of such planning.