Which of the following policies would most likely be enacted by a country undergoing a transition from a command to a market economy?

A country transitioning from a command to a market economy typically involves moving away from state control over resources and production towards a system where private individuals and companies have ownership and decision-making power. Selling state-owned enterprises to elements within the private sector is a fundamental step in this transition, as it introduces competition, encourages entrepreneurial activity, and fosters innovation. This shift allows the market to dictate prices and allocate resources more efficiently compared to a centrally planned system.

In contrast, erecting protective trade barriers would generally indicate a desire to shield domestic industries from foreign competition, which does not align with the principles of a market economy that thrives on open competition and trade. Transferring oversight of five-year plans to corporations still suggests a highly controlled approach, rather than the decentralized decision-making typical of market economies. Establishing a mechanism for counter-cyclical fiscal policy usually focuses on stabilizing the economy during fluctuations, rather than the foundational shifts required in ownership and management that characterize the transition to a market economy.