Question:
Which of the following characterizes the social market economy?
(1) Private ownership of all resources
(2) Public ownership of all resources
(3) Absence of a regulatory framework for the functioning of the price system
(4) Strong state role in the provision of welfare services
(5) Using centralized planning to resolve basic economic questions
Correct Answer:
(4)
Answer Explanation:
A social market economy combines a capitalist free-market system with active government intervention to ensure fair competition and a strong social safety net/welfare state for its citizens.
Topic: Economic Systems Year: 2022
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