German Conversation · Level 160
30 words
German word
Marktwirtschaft
Pronunciation
IPA/ˈmaɐ̯ktˌvɪɐ̯tʃaft/
Meaning
- feminine nounmarket economy
Example
In einer Marktwirtschaft entstehen Preise durch Angebot und Nachfrage.
In a market economy, prices are determined by supply and demand.
More examples
In einer Marktwirtschaft reagieren Unternehmen schnell auf Nachfrageänderungen.
In a market economy, companies respond quickly to changes in demand.
Core concept
Many individual exchanges produce price signals that coordinate economic activity without one central decision maker.
Common phrases
soziale Marktwirtschaft
social market economy
freie Marktwirtschaft
free-market economy
Similar words
Wirtschaft: The overall system of production, consumption, trade, and other economic activity.
Markt: A place or setting where goods and services are bought and sold.
Planwirtschaft: An economic system in which central plans set production levels and prices.
Kapitalismus: An economic system based on private property, profit seeking, and market exchange.
Definition in German
Ein System, in dem wirtschaftliche Entscheidungen dezentral von Marktteilnehmern durch Angebot und Nachfrage getroffen werden.
Word origin
Marktwirtschaft combines Markt with Wirtschaft, a noun related to wirtschaften and referring here to organized economic activity.
Usage tips
- Marktwirtschaft means market economy rather than necessarily free-market economy; the latter is usually freie Marktwirtschaft.
Opposites
- Planwirtschaftplanned economynoun
Related words
- marktwirtschaftlichmarket-economicadjective
- Marktwirtschaftsordnungmarket economy systemnoun