In a pure capitalist economy,"what to produce" is determined by

A) a central planning board.
B) the price mechanism.
C) the issuing of government coupons used along with money to purchase goods.
D) None of these choices are true.

Central Planning Board

A government body responsible for determining the allocation of resources and directing economic activity in a centrally planned economy.

Pure Capitalist Economy

An economic system where private individuals and firms control all resources, and market forces determine resource allocation with minimal government intervention.

Price Mechanism

The system by which the forces of supply and demand determine the prices of goods and services and allocate resources within an economy.