Question

A country followed a command economy. Now, it plans to follow a capitalist economy. Which of these changes will occur in this country due to the change in the style of economy?
A. The government will take a more active role in protecting workers.
B. Businesses will be given more freedom to produce different goods.
C. Individuals will have their political rights restricted.
D. Unemployment rates will fall until they reach nearly zero percent.

Answer 1

Answer:

B. Businesses will be given more freedom to produce different goods.

Explanation:

The economy of command is that where the factors of production are in the hands of the State. Therefore, the market loses its raison d'être as a mechanism for consigning resources. These manipulations are carried out through economic plans for several years (five-year plans), which specify in detail the supply, production methods, wages, investment in infrastructure.

Capitalism is an order or social and economic system that is in constant movement, derived from the usufruct of private property over capital as a tool of production, which is mostly constituted by business relations linked to investment activities and profit making, as well as labor relations, both autonomous and salaried subordinated free, for commercial purposes.

Answer 2

The correct answer is B) Businesses will be given more freedom to produce goods.

A command economy is one in which the government controls the means of production and the distribution of goods in a society. This means that the government can tell businesses what to make, how much of it to make, and how much each citizen should receive.

However, a capitalist economy is one in which businesses decide for themselves what to produce and how much to produce. This shows why letter B is correct.