What was the economic system of the DDR (East Germany) called?

Einbürgerungstest, question 203 German original

Wie hieß das Wirtschaftssystem der DDR?

  1. Marktwirtschaft market economy
  2. Planwirtschaft planned economy
  3. Angebot und Nachfrage supply and demand
  4. Kapitalismus capitalism
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Correct answer: Planwirtschaft planned economy

Why?

In the DDR (East Germany), the state planned and ran the economy. It decided what was produced, in what quantities and at what prices. West Germany, by contrast, had a social market economy.

Key term: Planwirtschaft = planned economy

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