In a free market economy, decisions are made according to the laws of

1. supply and demand

2. local government

3. wealthy citizens

4. national government

(1) Supply and demand

Explanation:

 The free market economy  is a process in which a competitive market place plays an important role in supply and demand for the goods and the services. The decisions are usually made based on the supply and the demand law.

The government also protect the national security by not giving permission to the companies for negotiate with the enemy countries and providing various types of services which are not usually provided by the private enterprise.

Therefore, Option (1) is correct.