50. The economic system in Germany is called …

Answer options

1. free centralized economy.
2. social market economy.
3. directed centralized economy.
4. planned economy.

Explanation

The “social market economy” denotes the Federal Republic’s economic order, combining ordoliberal competition with the constitutional social state principle (Art. 20(1), 28(1) Basic Law). While not codified as a model term in the Basic Law, it follows from rights such as freedom of occupation (Art. 12) and property subject to social obligation (Art. 14(2)), and from institutions like collective bargaining autonomy (Art. 9(3)), co-determination, and antitrust law (GWB). Historically rooted in Eucken’s ordoliberalism and Erhard’s policy, it emphasizes regulatory framework-setting rather than central planning. It thus contrasts sharply with a directed central or planned economy of the GDR type.