Question

In an economy in transition from central planning to free enterprise, which of the following might you expect to see?

private firms sold to the government

increased government presence in the factor and product markets

increased job security

state firms sold to private individuals or entities

Answer 1

D.) state firms sold to private individuals or entities

Answer 2

State firms being sold to private individuals and entities would most likely happen when an economy gets in the transition from a central planning economy to a free enterprise. It is because, in a free enterprise system, there would be less and fewer restrictions coming from the government in business activities.