Question 50: The economic system in Germany is called ...
Answer Options:
- A) free central economy
- B) social market economy ✓ (Correct Answer)
- C) guided central economy
- D) planned economy
Explanation:
Germany's economic system is known as the social market economy. This model, established by principles enshrined in the Basic Law, aims to balance free market competition with social justice and security for its citizens. Option A, "freie Zentralwirtschaft," is incorrect because while Germany has a market economy, it is not entirely free from regulation, and it is not centrally planned. Option C, "gelenkte Zentralwirtschaft," is also incorrect as it implies a high degree of central control over economic decisions, which is not characteristic of Germany's system. Option D, "Planwirtschaft," refers to an economy where production and distribution are centrally planned by the state, a system that Germany has historically moved away from. The term "soziale Marktwirtschaft" accurately reflects the German approach, which combines a competitive market with social policies to ensure fairness and well-being.
Study Tip:
Remember 'soziale' for social justice and 'Marktwirtschaft' for market economy.


