Catalogue question 171 · Question catalogue in force since 2024-07-01
A social market economy means that the economy …
- is regulated purely by supply and demand.
- is planned and directed by the state, without regard to supply and demand.
- is governed by demand abroad.
- is governed by supply and demand, but the state ensures a social balance. Correct
Why — for every option
- A — Pure regulation by supply and demand without state balancing describes a free market economy, not a social market economy.
- B — Complete state planning without market mechanisms describes a planned economy, the opposite of a social market economy.
- C — Germany's economic order is not primarily governed by foreign demand but by the domestic market and social security.
- D — Correct: the social market economy combines the market mechanisms of supply and demand with a state-organised social balance, for example through social insurance and worker protection.
Source: www.bpb.de
Last checked: · Question catalogue in force since 2024-07-01 · Every figure on this page is checked against its primary source.