Governmental Systems and Economy EOC Prep
Direct Democracy Maximum political participation Citizens determine the legislative process by voting directly Ancient Greece
Republic (Representative Democracy) Elected officials representing a group of people Rome United States
Parliamentary Democracy Legislative Branch elects the leader prime minister or chancellor Great Britain Canada
Totalitarian (Authoritarian) Government that is centralized and dictatorial and requires complete subservience to the state North Korea Nazi Germany
Theocracy Form of government based on religion where the clergy have sovereign power Iran Vatican
Monarchy Government in which sovereignty is embodied in one or several individual(s) reigning until death or abdication King Queen
Constitutional Monarchy King or queen acts as Head of State The ability to make and pass legislation resides with an elected Parliament Great Britain
Oligarchy Small group of people having control of a country, organization, or institution Russia
Communism All economic and social activity is controlled by a totalitarian state Property owned by the community as part of the government
Socialism Social and economic system characterized by social ownership of the means of production and co-operative management of the economy
Market Economy (Capitalism) Investment, production, and distribution are based on supply and demand No government regulation
Mixed Economy Economic system that features characteristics of both capitalism and socialism United States
Fiscal Policy Government power to tax and spend to influence the economy
Monetary Policy Government control of the following: Supply of Money Inflation Interest Rates
Federal Reserve Central banking system of the United States Regulates Credit Regulates Banks Controls Interest Rates Money Supply (Inflation) Board of Governors 7 Members Appointed by President Confirmed by Senate 14 Year Terms
Laissez Faire Economics Hands Off! Limited or no control Government Economy
Federal System Federal Government State Governments County Governments City Governments United States Australia
Confederal System Union of political units for common action in relation to other unit Articles of Confederation European Union
Unitary System Government is a sovereign state governed as a single entity. Great Britain
Foreign Policy Policy pursued by a nation in its dealings with other nations Political Realism Countries always do what is in their best interests Political Idealism Countries will usually do the right thing