Discuss the differences in allocative efficiency between a capitalist and a socialist economic system as they relate to the price mechanism in each system.

The correct answer to this open question is the following.

Although there are no options attached, we can say the following.

Discuss the differences in allocative efficiency between a capitalist and a socialist economic system as they relate to the price mechanism in each system.

In Capitalism, allocative efficiency can be understood as the correct distribution of all the products, taking into consideration the preference of consumers. The allocative efficiency requires the price to be the same as the marginal cost of production.

On the other hand, in Socialism, it is the state the one that owns the means of production. There is no competence between companies, as is the case of Capitalism. It is the state the one that says what to produce when to produce, the number of products being produced, and the price.

the correct answer is modern american cars are not available due to trade restrictions.

trade between cuba and the united states have serious restrictions. the u.s. imposed an economic embargo on cuba, that among other things means that modern american cars are not available due to trade restrictions.

in response to some governmental actions of the authorities from cuba, president john f. kennedy proclaimed an embargo on trade between both countries in february 1962. the trade embargo remains active until this day and was implemented directly by the departments of commerce and the department of treasury.

in president trump’s administration, there is a national security presidential memorandum that "strengthens the policy of the u. s.", affecting trade with cuba.