A planned economy, also known as a command economy, is a system where the government makes all decisions regarding the production and distribution of goods and services. In this type of economy, central authorities determine what to produce, how much to produce, and the prices of goods. This approach aims to allocate resources efficiently and meet the needs of the population. In a planned economy, the government often owns and controls major industries, such as energy, transportation, and healthcare. This system contrasts with a market economy, where supply and demand dictate production and pricing. Planned economies are often associated with socialist or communist ideologies.