Privatization Drives Market Economy Transition

Steps:

• Define a market economy: one where private individuals and firms allocate resources via supply and demand, not state directives.
• Contrast with China's current system: heavy state ownership and control in key sectors.
• Evaluate policies: identify which shifts power from state to private actors to enable market mechanisms.
• Select direct contributor: policy that reduces state dominance and boosts private enterprise.

Why D is correct:

• Transferring wealth to the private sector aligns with economic definition of privatization, reducing state intervention and allowing market forces to determine production and prices.

Why the others are wrong:

• A: Complete abolition is unrealistic and not a gradual policy; market transitions occur incrementally.
• B: Alters consumer behavior but doesn't address core state vs. private ownership structure.
• C: Affects trade balance, promoting openness but not directly shifting control from state to markets.

Final answer: D