In 1980, in order to stimulate agricultural production, Fidel Castro allowed Cuban farmers to sell their goods directly to consumers and keep whatever profit they made.Some farmers were earning $50,000 per year, compared with the average worker income of $2,400.The workers resented this.Castro denounced the farmers as "capitalist gangsters" and closed the free markets.Cuban cash income declined 5 percent and fresh vegetables were in short supply.This illustrates the economic concept of the

Question

Quizplus · Accepted Answer

The situation in Cuba illustrates the equality-efficiency trade-off, where efforts to increase equality (in this case, limiting the income gap between farmers and other workers) can lead to decreased efficiency in the economy (such as shortages of important goods like fresh vegetables).

In 1980, in Order to Stimulate Agricultural Production, Fidel Castro