Final answer:
In a market-oriented economy with state ownership, private firms have the freedom to make their own choices, including market allocation policies. However, the government also plays a role in correcting market failures and guiding markets toward certain outcomes.
Step-by-step explanation:
In a market-oriented economy with state ownership, market allocation policies are permitted. Market allocation refers to the distribution of resources and goods based on market forces of supply and demand. In such an economy, private firms generally have the freedom to make their own choices, including expanding or reducing production, setting prices, opening or closing factories or sales facilities, hiring or laying off workers, and starting or stopping the sale of products.
However, it is important to note that while market allocation policies are permitted, the overall ownership of resources and control may still lie with the government. The government plays a role in correcting market failures and guiding markets toward certain outcomes to benefit society as a whole.