Transition to Market Economy via Privatization

Steps:

• Identify planned economy features: government control, nationalization, common ownership.
• Identify market economy features: private enterprise, competition, private property rights.
• Match transition actions: shift from state control to private ownership.
• Evaluate options for alignment with market principles.

Why B is correct:

• Privatization transfers state-owned firms to private hands, enabling market-driven decisions as per economic theory of free markets.

Why the others are wrong:

• A: Both fiscal and monetary policies operate in market economies; no replacement occurs.
• C: Market economies promote multinational expansion, not replacement by national firms.
• D: Market transitions emphasize private property, not common ownership.

Final answer: B