Economy · Question 43 of 59
Social market economy means that the economy …
1 answer is correct. Hard
Show answer
Answer
- D is based on supply and demand, but the state ensures social balance.
Explanation
In the social market economy, supply and demand determine prices and production. The state intervenes, however, to safeguard competition and ensure social balance, for example through social insurance, employee rights and social benefits. Ludwig Erhard, economics minister under Adenauer, is regarded as one of its fathers.