In a planned economy, the government dictates the economic activities. On the other hand, in a market economy, market forces of supply and demand determine economic activities and the resultant growth. Planned economies focus on public welfare. In contrast, a market economy focuses on profit and economic growth.

A mixed economy is run partly by the government but mostly as a free market economy (an economy with little government intervention and predominantly driven by the private sector). In a command economy, economic activities are planned and ordered by the government, which controls all production mechanisms.