Capitalist Economy: It is also termed as laissez faire system. In a capitalist economy, the role of government is very limited. The main functions of government, as given by Adam Smith, are to maintain law and order in a country, make national defense stronger, and regulate money supply.

A command economy is where a central government makes all economic decisions. Either the government or a collective owns the land and the means of production. It doesn’t rely on the laws of supply and demand that operate in a market economy. A command economy also ignores the customs that guide a traditional economy.

A centrally planned economy, also known as a command economy, is an economic system in which a central authority, such as a government, makes economic decisions regarding the manufacturing and the distribution of products.

Capitalism affords economic freedom, consumer choice, and economic growth. Socialism, which is an economy controlled by the state, provides for a greater social welfare and decreases business fluctuations.

Government makes all economic decisions. Government, owns basic resources; the rest are privately owned. Socialism(How are resources allocated?) Government planners allocated basic resources market forces allocate privately-owned resources.

Answer: Business strategies play the largest role in economic decisions in a market economy.

In a Centrally planned economy, also known as a command economy, the central government controls the factors of production and answers the three basic economic questions for all of society.

What are two things that a command economy fails to provide consumers? Competition and consumer sovereignty.

Under a command economy, governments own the factors of production such as land, capital, and resources, and government officials determine when, where, and how much is produced.

There are benefits and drawbacks to command economy structures. Command economy advantages include low levels of inequality and unemployment, and the common good replacing profit as the primary incentive of production. Command economy disadvantages include lack of competition and lack of efficiency.

KEY Points. Disadvantages of socialism include slow economic growth, less entrepreneurial opportunity and competition, and a potential lack of motivation by individuals due to lesser rewards.

Economy

Denmark supports a high standard of living—its per capita gross national product is among the highest in the world—with well-developed social services. The economy is based primarily on service industries, trade, and manufacturing; only a tiny percentage of the population is engaged in agriculture and fishing.

The Danes are still not as rich as the Americans. At the time Denmark became rich relative to the rest of the world, it was not a welfare state. In fact, Denmark has historically been a low tax country by international standards.

approximately 844 Danish kroner per square meter

Denmark has a GDP per capita of $50,100 as of 2017, while in United Kingdom, the GDP per capita is $44,300 as of 2017.