social-market-economy-means-that-the-economy-
📌 Question
Social market economy means that the economy …
📝 Options:
🔘 A) controls itself solely according to supply and demand.
🔘 B) is planned and controlled by the state, supply and demand are not taken into account.
🔘 C) is based on demand abroad.
🔘 D) is based on supply and demand, but the state provides social balance.
🔍 Show Answer
💡 Correct Answer: d
📖Explanation: The social market economy is an economic system that was developed in Germany after the Second World War. It combines the principles of the free market economy, such as supply and demand, with social compensation mechanisms that promote social peace and justice. The state intervenes in a regulatory manner to prevent market failures, provide social security systems and ensure equal opportunities. This model aims to combine economic growth with social responsibility in order to achieve both efficiency and social balance.