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

A. law of comparative advantage.
B. equality-efficiency trade-off.
C. cost disease of the service sector.
D. unemployment-inflation trade-off.
E. All of these responses are correct.


Answer: B

Economics

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