Question

China has decentralized some aspects of the economy to allow more economic growth. What does this mean?

China's government has strict control over the economy


China has allowed some individual control of economic decisions and allowed foreign investment


China has given some political freedoms to its citizens


Chinese businesses have outsourced its labor to India

Answer 1

The correct answer is the second option.

Decentralizing the economy means that the government is backing off (while centralizing the economy signifies greater government involvement). Decentralization leads to greater individual freedom within the economy because the government is no longer controlling every aspect. This has nothing to do with political freedom, or outsourcing.