Keyword Analysis & Research: cuba command economy system


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Why is Cuba a good example of a command economy?

Command Economy Example in Cuba. The government provides direct aid to farmers, offering cash subsidies for their crops, or paying them to hold back a portion of their yields. This type of aid not only benefits farmers, but inhibits market flooding of certain products in an attempt to keep prices stable.

What are the problems of a command economy?

Command Economy. Command economies traditionally have been inferior to free market economies in their ability to allocate goods and services efficiently. This inefficiency creates shortages and wasteful surpluses. The problem is caused by the inability of the government central planners to accurately predict consumer demand preferences.


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