Cuba Is a Command Economy That Suffered a Decline in Economic

question 284

Multiple Choice

Cuba is a command economy that suffered a decline in economic growth because of a cut in the aid provided by the former Soviet Union when the latter collapsed. As a consequence, Cuba

• A) experienced an outward shift of its production possibilities curve.
• B) experienced an inward shift of its production possibilities curve.
• C) moved from one point to another along its existing production possibilities curve.
• D) went to a point inside its production possibilities curve.

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Definitions:

Antitrust Laws

Legislation enacted to prevent new monopolies from forming and to break up those that already exist in order to ensure fair competition in the market.

Social Welfare

A system that provides assistance to needy individuals and families in a society through various forms of financial aid, health care, and social services.

Sherman Antitrust Act

A landmark federal statute passed in 1890 aimed at promoting economic competition by prohibiting monopolies and other activities that restrict trade.

Congress

The bicameral legislature of the federal government of the United States, consisting of two chambers: the Senate and the House of Representatives.