Section 3: Government and economics  Democracy A governing system where the people take part in the decision making process People in a democracy vote.

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Presentation transcript:

Section 3: Government and economics  Democracy A governing system where the people take part in the decision making process People in a democracy vote and choose leaders ○ For Democracy to work well people must participate and stay informed  Democracy is not just a governing system it’s a way of life All citizens are equal

Ancient Greeks ○ Formed the 1 st democracy Direct Democracy ○ All citizens with the right to vote play a role in every decision that is made Majority Rule ○ Decisions are made by the approval of the majority of the group The judgment of many is better than the judgment of a few

 Other Governing systems Monarchy ○ Rule by one ○ King or Queen ○ Power is said to be given by God and is passed down through the generations Dictatorship ○ One person claims complete control ○ Rule is usually gained by force ○ Power is not inherited

 Oligarchy Rule of the few ○ The people in control are the people with money or prestige These people are not elected they are in charge because they say they are

 Economies around the world Economies are classified by industry Four types of industry 1. Primary industry- Natural resources include: farming, fishing, logging, and mining ○ Primary industry brings natural resources to market

2. Secondary industry ○ This industry turns a natural resource into a finished product ○ Using cotton to make clothes 3. Tertiary industry ○ Stores and trucking companies are examples of the tertiary industry ○ Provide goods and also services 4. Quaternary industry ○ This industry involves research, information gathering, or business management ○ Scientists, accountants, architects, lawyers are all people in the quaternary industry they are also part of the service aspect of the tertiary industry

 How industry describes a country Developed countries ○ Countries that have well-established economies Developing countries ○ Countries with economies that are still being built  GDP- Gross Domestic Product The measure of the total value of goods and services a country produces A developed country has a higher GDP than a developing country

 Economic Systems Traditional economy ○ Has not changed, people do the same work they did in the past ○ Subsistence farming- Growing only enough food for you and your family Only making enough and never being able to improve their way of farming Command economy ○ The government or a central authority makes most of the economic decisions ○ The central authority controls both the farms and the factories ○ The government controls what and how much will be produced

Market economy ○ The people own and control business ○ They make their own choices about what goods and services will be produced and bought  Market economies Supply-the amount of goods and services for sale Demand-How much of a product people want Free enterprise