Question

Which action would MOST LIKELY make Cuba's economic system more like Mexico's? A. Decreasing personal income tax rates B. Increasing per capita income by not allowing a free market C. Decreasing government involvement in major businesses D. Increasing incentives (motivation) to trade

Answer 1

The correct answer is C) Decreasing government involvement in major businesses.

The action that would MOST LIKELY make Cuba's economic system more like Mexico's is "decreasing government involvement in major businesses."

Cuba is the only country in the world with Venezuela, which still reminds a Communist economy in which the government owns most of the companies and there is no private business. The State in Cuba dictates what to produce when to produce, where to produce, the number of products to produce., and the price of the products. Like a command economy.

If Cuba would like to have an economic system more like Mexico's, it has to sell many industries that today are owned by the government. Privatization of the industry is what Mexico did in 1988 when Carlos Salinas de Gortari became the President of México.