Question

Describe the changes you think would take place if a capitalist system suddenly changes to a command system?

Answer 1

The government, rather than the free market, determines what goods should be produced, how much should be produced and the price at which the goods are offered for sale.

Answer 2

Several changes that would occur are:

- The type of goods and services that can be produced in the country would be determined by the government, not the market.

- There wouldn't be different price for a same product like in a capitalist system, since the product price would be set by the government as a national standard.

- Foreign investors would most likely turn away from countries with a command system since it provides very little rewards for products inventions.