Question 9
The type of economy in Germany is called...
German original: Die Wirtschaftsform in Deutschland nennt man …. In the test, all questions are asked in German.
Answer options
- free central economy.
- social market economy. — Correct answer
- directed central economy.
- planned economy.
Explanation
Germany's economic system is the social market economy. It combines free competition with social balance: the market regulates supply and demand, while the state cushions social hardships.
Key terms in this question
- Germany — Germany is a country in central Europe with a parliamentary democracy. It is a member of the European Union and its capital is Berlin.
- economy — The economy includes all activities related to the production, sale, and purchase of goods and services, as well as the businesses and people involved in them.
- Federal state — A federal state is one of the 16 regions that together form Germany. Each state has its own government, parliament, and areas of responsibility.
- German — German is the official language of Germany, Austria, and part of Switzerland. It is the native language of approximately 100 million people.
- economic system — An economic system describes how a society produces, distributes, and consumes goods and services. Germany's economic system is the social market economy.