o Produce: The private businesses groups or individual decide on who and how will be the production of potential goods take place.

No involvement of government and legal policies of anti-discrimination and equal employment is observed in this choice (Moyher, 2017).

What to produce: In economies of the pure market, the private business group decide by themselves regarding the goods that are to be produced. The business people themselves play the role of making decisions on categories of goods that are to be produced without any anti-monopoly and anti-trust laws of government (Moyher, 2017; Johansson, Karlsson and Westin, 2012).

For whom to produce: After production of goods, the highest bidders are selected for selling the goods who can pay highest prices with no concern and interference of government (Johansson, Karlsson and Westin, 2012; Moyher, 2017).

Section 2.3 Price Mechanism under the Pure Market Economy

As per Meyer and Ahlert (2019), the price mechanism, potentially in the pure market economy, works based on price elasticity which generates according to fluctuation in the goods’ demands. As the demand for goods gets raised in this type of market, the price rate also tends to get increased simultaneously. Moreover, while the demand gets decreased, the price rate also gets decreased so as to increase the sales anyhow by creating a sense of cost reduction. In addition to this, the price mechanism in the pure market economy also helps in organising the production of products and goods. Further, the price mechanism would also help in distributing the developed goods in the market, which would further help in enhancing the economy of the country. The price mechanism would also help in resolving the issues related to the production of the goods and services as well as helps in defining the quantity of the products to be developed (Meyer and Ahlert, 2019).

Section 3: Centrally Planned Economy

Section 3.1 Introduction

Hare (2013) reviewed that a Centrally Planned Economy (CPE) is an economic system where the state of the government plays a chief role in making economic decisions. The involvement of the customers and business enterprises is not identified in the decision-making process in a CPE. The business enterprise owned by the state is respons