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.

Question

Quizplus · Accepted Answer

The loss of aid from the former Soviet Union caused a decrease in resources available for production, leading to a decrease in potential output. This is reflected by an inward shift of the production possibilities curve.

Cuba Is a Command Economy That Suffered a Decline in Economic