Political and Economic Systems Nuts and Bolts

Division of Power Within a Gov’t Unitary System The national government determines everything, including deciding how much authority local gov’t will have Ex. France, United Kingdoms Federal System Government powers are divided by the national gov’t and local gov’ts. Ex. The United States All citizens must follow federal laws, but also state and local laws

Types of Government Autocracy Oligarchy Democracy Ruled by one person (monarchy) Ex. Saudi Arabia Oligarchy Ruled by a “few” people Ex. Ancient Greece- Sparta Democracy Leaders rule with the consent of the governed Ex. The United States

Economic Systems ***Not on your project form*** Traditional Economy Habit and custom determine the rules for all economic activity Individuals do not make decisions, all decisions are based on the customs of ancestors Ex. Inuits- hunters shared food with other familes

Market Economy Individuals and Private Groups make decisions about what to produce People make decisions about what they want to buy Free Enterprise- the idea that private individuals or groups have the right to own businesses and make a profit with limited gov’t interference

Command Economy The Gov’t owns the direct means of production- land, labor, capital (machines, factories, etc.) Goods are “fairly” distributed among people Heavy Taxes are collected to pay for healthcare, education, etc. for all Communism Strict gov’t control- equal distribution of goods Socialism Some free enterprise- equitable distribution of goods Democratic Socialism Gov’t meets basic human rights, people elect leaders

Resources, Trade, Environment Economies are affected in many ways: Renewable vs. non-renewable resources Developing vs. Developed Countries Industrialization is moving countries from agricultural to manufacturing jobs Unequal distribution of resources promotes trade What is deforestation? How does deforestation affect Environment, Trade, and Economy?