171. Social market economy means that the economy …

Official German wording

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.

Answer options

is governed solely by supply and demand.
is planned and controlled by the state; supply and demand are not taken into account.
is oriented toward demand abroad.
is guided by supply and demand, but the state ensures social balancing.

Correct answer

is guided by supply and demand, but the state ensures social balancing.

Explanation

The social market economy is an ordoliberal concept shaped by Walter Eucken and Alfred Müller‑Armack and implemented politically by Ludwig Erhard. It combines a competitive order grounded in constitutional guarantees of property (Art. 14 Basic Law) and freedom of occupation (Art. 12) with the welfare‑state principle (Art. 20(1), Art. 28(1)): the state provides a rule‑of‑law framework (antitrust law, independent oversight) and ensures social balancing through social insurance, taxation, and codetermination. The Basic Law does not prescribe a specific economic system, is open to such market‑based arrangements, and stands in marked tension with centralized planning.

Official sources

The German questions come from the original BAMF catalog for the Einbürgerungstest and Leben in Deutschland. Translations and explanations are study aids; verify legal details in the official sources.