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

A cut in aid from the former Soviet Union would mean a reduction in resources and technology available to Cuba, leading to a decrease in the country's economic capacity. This would result in an inward shift of the production possibilities curve, indicating a reduction in the maximum amount of goods and services that can be produced.

Cuba Is a Command Economy That Suffered a Decline in Economic