WBCS.LIVE practice question
Among the following countries, where did the idea of ‘Social Market Economy’ emerge in 1950s?
Solve this multiple-choice question and check the correct answer with its explanation below.
Answer options
Correct answer and explanation
Correct answer: Germany
Explanation: The concept of the ‘Social Market Economy’ emerged in West Germany during the 1950s, led by economist Ludwig Erhard. It combined the efficiency of a free-market economy with the principles of social justice, ensuring growth with welfare. This model promoted competition, private enterprise, and price stability, while also providing social security and protection to citizens. It became the foundation of Germany’s post-war economic recovery, popularly known as the ‘German Economic Miracle’.