If China continues to move toward greater free market reforms, it is most likely to:

• A. adopt more centralized planning in resource allocation
• B. decrease the role of private enterprise in the economy
• C. experience increased economic growth and efficiency
• D. reduce competition and limit consumer choice

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of free market reforms. Free market reforms involve reducing government intervention and allowing market forces like supply and demand to allocate resources more efficiently.
2. Step 2: Recognize that centralized planning is the opposite of free market reforms. Centralized planning means the government controls resource allocation, which typically decreases efficiency and innovation.
3. Step 3: Analyze the role of private enterprise. Free market reforms usually increase the role of private enterprise, encouraging entrepreneurship and competition.
4. Step 4: Consider the effects on competition and consumer choice. More free market reforms tend to increase competition and expand consumer choices, rather than reduce them.
5. Step 5: Conclude that moving toward greater free market reforms is most likely to lead to increased economic growth and efficiency, as markets allocate resources more effectively and encourage innovation.