Question

How does the command-leaning economy of Cuba answer the three basic economic questions (what to produce, how to produce and for whom to produce)?

A. The past guides all decisions about how to answer the basic economic questions

B. The government makes all the decisions about answering the basic economic questions

C.Supply and demand will determine how all the basic economic questions are answered

D.Supply and demand will answer the basic economic questions, but government will make changes to guarantee fairness and productivity

Answer 1

B. The government makes all the decisions about answering the basic economic questions.

Step-by-step explanation:

Cuba has a command or planned economy, which means that the government controls all aspects of the economy, including what goods and services are produced, how they are produced, and who receives them. The government sets production targets and allocates resources to state-owned enterprises, which are responsible for meeting those targets.

The government also sets prices for goods and services, and wages for workers. There is little room for private enterprise in Cuba's command economy, and the government heavily regulates all economic activity.

Therefore, the government of Cuba makes all the decisions about what to produce, how to produce it, and who receives the goods and services. The economic decisions are primarily based on political considerations, rather than supply and demand or consumer preferences.