Denmark’s Economic Systems
By: Ani Poddar
The country of Denmark has adopted the free-market economic system (Denmark). A free-market economy similar to laissez-faire systems is one which is based on supply and demand within the economy. It implies that there is little government intervention, therefore consumers and producers are able to interact freely (Rothbard). Buyers and sellers can execute transactions once they reach an agreement on the price. These transactions occur without the government intervening through subsidies, regulations, or taxes (Rothbard). Adopting and following the free-market system has proven to be highly beneficial for Denmark’s economy. An example of this could the role free-market played during Denmark’s farming crisis during the late nineteenth century. In in the late 1800s, Denmark’s primary agricultural commodities were grains (Denmark). This was until surplus supply of grains from Russia and United States resulted in the world price for grains falling (See Figure 1). Since global grain supply changed, the free-market economic system was in play and allowed Denmark to capitalise on the opportunity. The agricultural sector capitalised on the opportunity by adapting to the change in supply. The primary commodity being produced shifted from grains to livestock; farmers began feeding livestock the newly cheap grains. To this day, one of Denmark’s main export commodities is livestock, it is a huge source of revenue for the country (Denmark). Denmark’s economic system is based on supply and demand, rather than one which focuses on specific goods regardless of external economic activity. It is because of this Denmark was able to make a profit.
Figure 1: Supply Increase in Grains
(Law of Supply)
This figure illustrates how the increase in grain supply resulted in a decrease in price. It is because of this decrease in price, that Denmark's agricultural sector found it more profitable to feed livestock grains, than to sell the grains themselves.
Work Cited -
"Denmark." Cities of the World. 2002. Retrieved September 01, 2015 from Encyclopedia.com.
"Law of Supply." Wright's Land of Economics. Tangient LLC, 2015. Web. 01 Sept. 2015.
Rothbard, Murray N. "Free Market." Library of Economics and Liberty. Liberty Fund, Inc., 2008. Web. 01 Sept. 2015.
Watkins, Jeffery. "Economic Systems." Regents Prep. Oswego City School District Regents Exam Prep Center, 2003. Web. 01 Sept. 2015.
By: Ani Poddar
The country of Denmark has adopted the free-market economic system (Denmark). A free-market economy similar to laissez-faire systems is one which is based on supply and demand within the economy. It implies that there is little government intervention, therefore consumers and producers are able to interact freely (Rothbard). Buyers and sellers can execute transactions once they reach an agreement on the price. These transactions occur without the government intervening through subsidies, regulations, or taxes (Rothbard). Adopting and following the free-market system has proven to be highly beneficial for Denmark’s economy. An example of this could the role free-market played during Denmark’s farming crisis during the late nineteenth century. In in the late 1800s, Denmark’s primary agricultural commodities were grains (Denmark). This was until surplus supply of grains from Russia and United States resulted in the world price for grains falling (See Figure 1). Since global grain supply changed, the free-market economic system was in play and allowed Denmark to capitalise on the opportunity. The agricultural sector capitalised on the opportunity by adapting to the change in supply. The primary commodity being produced shifted from grains to livestock; farmers began feeding livestock the newly cheap grains. To this day, one of Denmark’s main export commodities is livestock, it is a huge source of revenue for the country (Denmark). Denmark’s economic system is based on supply and demand, rather than one which focuses on specific goods regardless of external economic activity. It is because of this Denmark was able to make a profit.
Figure 1: Supply Increase in Grains
(Law of Supply)
This figure illustrates how the increase in grain supply resulted in a decrease in price. It is because of this decrease in price, that Denmark's agricultural sector found it more profitable to feed livestock grains, than to sell the grains themselves.
Work Cited -
"Denmark." Cities of the World. 2002. Retrieved September 01, 2015 from Encyclopedia.com.
"Law of Supply." Wright's Land of Economics. Tangient LLC, 2015. Web. 01 Sept. 2015.
Rothbard, Murray N. "Free Market." Library of Economics and Liberty. Liberty Fund, Inc., 2008. Web. 01 Sept. 2015.
Watkins, Jeffery. "Economic Systems." Regents Prep. Oswego City School District Regents Exam Prep Center, 2003. Web. 01 Sept. 2015.
1 comment:
Good Ananya, you put in lot of efforts. I appreciate your efforts to sail through various sources. Proof reading is important before posting your work.
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Happy blogging.
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