Question 212 of 300Politics in a Democracy

Social market economy means that the economy ...

Pick an answer

is controlled solely by supply and demand.
is planned and controlled by the state, supply and demand are not taken into account.
is based on demand abroad.
is based on supply and demand, but the state ensures a social balance.

Correct!

Not quite. The correct answer is marked in green.

Show answer

Correct answer to question 171: is based on supply and demand, but the state ensures a social balance.

Explanation

In a social market economy supply and demand drive prices and production, while the state ensures a social balance through social insurance, taxes and labour law. The concept was developed by Ludwig Erhard in post-war West Germany.

The question in German, as it appears in the test

Soziale Marktwirtschaft bedeutet, die Wirtschaft …

steuert sich allein nach Angebot und Nachfrage.
wird vom Staat geplant und gesteuert, Angebot und Nachfrage werden nicht berücksichtigt.
richtet sich nach der Nachfrage im Ausland.
richtet sich nach Angebot und Nachfrage, aber der Staat sorgt für einen sozialen Ausgleich.

Last updated: November 2026

Study smarter with the appFree on iPhone and Android

Practice it in test 233 questions · 60 minutes · pass with 17

Social market economy means that the economy ...

Explanation

More questions on this topic