<Ul> <Li> </Li> <Li> </Li> <Li> </Li> </Ul> <P> Economic planning is a resource allocation mechanism that is contrasted with the market mechanism . As a coordinating mechanism for socialist economics, economic planning substitutes factor markets and is defined as a direct allocation of resources . This is contrasted with the indirect allocation mechanism of a market economy . There are various types that economic planning procedures and forms planning can take . </P> <P> The level of centralization in decision - making in planning depends on the specific type of planning mechanism employed . As such, one can distinguish between centralized planning and decentralized planning . An economy primarily based on central planning is referred to as a planned economy . In a centrally planned economy the allocation of resources is determined by a comprehensive plan of production which specifies output requirements . Planning may also take the form of directive planning or indicative planning . </P> <P> Most modern economies are mixed economies incorporating various degrees of markets and planning . </P>

A centrally planned economy most often refers to an economic system that is under comprehensive