A planned economy is a state-run economy. In such an economic system, the central governing body is in charge of all significant industries of the country and controls everything associating with the volume of production and technique and proportion of distribution of all services and items produced by these industries. The ideas of command economy and centrally prepared economy come rather close to a prepared economy, the latter are not synonymous to the prepared economy. A command or centrally planned economy is a couple of notches more extensive than a prepared economy as under such an economic system, the economic dynamics of rate and supply of services and goods are completely in the hands of the government. There is a separate government planning body, total with administrative administration, that manages the economic planning, investment and resource allocation of the whole country. The most prominent distinction in between a prepared and a command economy is the fact that while the government possesses all ways of production in the latter case, the government just regulates the economic machinery without revealing state ownership of the means of production in the previous case.
The production of said services and items is also carried out by the state itself. Unlike market or capitalist economy where there is little to no government participation in the economic activities of the nation except the prompt collection of taxes, the government of a centrally planned economy liquid chalks out a whole plan right from the pre-production phase to the production of the circulation and also the post-production phase.
Today, very couple of nations – Iran, Cuba, North Korea, Libya, Myanmar and Saudi Arabia – follow the system of a prepared economy.