CHAPTER 2 LESSON 3

DEMOCRACY A governing system in which a country’s people elect their leaders and rule by majority. The people vote to choose the leaders.

MAJORITY RULE A system in which the ideas and decisions supported by the majority of people are followed A system in which the ideas and decisions supported by the majority of people are followed

RIGHT A freedom A freedom

MONARCHY The system of government in which a king or a queen rules. The system of government in which a king or a queen rules. The king or queen inherits the throne. The king or queen inherits the throne.

DICTATORSHIP A governing system in which one person rules with absolute authority A governing system in which one person rules with absolute authority The citizens do not get to choose what is best for their lives. The citizens do not get to choose what is best for their lives.

OLIGARCHY A system in which a small group that is not elected controls the government. A system in which a small group that is not elected controls the government. The citizens do not get to make decisions, and they do not get to elect leaders. The citizens do not get to make decisions, and they do not get to elect leaders.

INDUSTRY All the businesses that make one kind of product or provide one kind of service All the businesses that make one kind of product or provide one kind of service

TYPES OF INDUSTRIES Primary Primary Natural resources like farming, fishing, mining Natural resources like farming, fishing, mining Secondary Secondary Turning natural resources into a finished product like clothing Turning natural resources into a finished product like clothing Tertiary Tertiary Sells and transports primary and secondary industry products like a trucking company or a store, also provide not only goods but services, banking education and health services. Sells and transports primary and secondary industry products like a trucking company or a store, also provide not only goods but services, banking education and health services. Quaternary Quaternary Involves research and gathering information like a scientist, accountant, architect, lawyer, and engineer. Involves research and gathering information like a scientist, accountant, architect, lawyer, and engineer.

DEVELOPED COUNTRIES A country with a well-established economy generally containing all four forms of industry A country with a well-established economy generally containing all four forms of industry

DEVELOPING COUNTRIES A country with a well-established economy generally containing all four forms of industry A country with a well-established economy generally containing all four forms of industry

GDP Gross domestic product Gross domestic product The total value of the goods and services produced in a country The total value of the goods and services produced in a country

SUBSISTENCE FARMING Farming in which people raise only enough food for themselves and their families Farming in which people raise only enough food for themselves and their families

FREE ENTERPRISE An economic system in which people choose what to make, sell, or buy without government control An economic system in which people choose what to make, sell, or buy without government control

TYPES OF ECONOMIES Command economy Command economy The government makes most of the economic decisions The government makes most of the economic decisions Market economy Market economy The people own and control businesses. The people own and control businesses. This system benefits the average citizen. This system benefits the average citizen. The people decide which goods and services they will buy or produce. The people decide which goods and services they will buy or produce. The people decide how to spend their money. The people decide how to spend their money. The people decide what kind of job they will have. The people decide what kind of job they will have.