1. Political & Economic Systems
Ch. 4 Sec. 3

2. Jobs of any Govn’t Maintain social order Provide national security
Provide social services to the people
Support economic stability & growth

3. Levels of Govn’t Most will have national, regional, and local
U.S., Texas, Sugar Land
Two diff. ways of organizing them-
Unitary system
Federal system

4. Unitary System All key powers held by national govn’t
(unified)
National govn’t then creates the lower levels and gives them limited sovereignty
Sovereignty = complete independence or self-rule
Ex’s: United Kingdom & France

5. Federal System Powers are divided b/w national and state govn’ts.
Supreme power is given to national (federal) level
States have powers fed. govn’t cannot touch (sovereignty in certain areas)
Ex’s: USA, Mexico, Canada, Brazil, India

8. Levels of Government Review
Unitary
Federal
Confederate
Strong Central Government
Shared Powers
Strong States Governments

9. Types of Govn’t How do they exercise authority?
Who runs the government?
3 diff. categories:
Autocracy
Oligarchy
Democracy

10. Autocracy Single person has all the power Two types:
Oldest and most common
Get power from inheritance, or force (military, police)
Two types:
Totalitarian Dictatorship
Monarchy

11. Autocracy Totalitarian Dictatorship
Controls all aspects of society & economy
People have no say, no power to limit ruler’s axns
Ex’s: Hitler, Stalin, Mussolini, Kim Jong Il

12. Autocracy Monarchy Absolute monarch (king/queen) has all power
Typically inherited
Ex’s: Saudi Arabia
Constitutional monarch shares power with legislative branch
Ex’s: UK, Japan

13. Oligarchy Small group of people who hold power
Gets power by wealth, military, social position, religion
Mostly in communist countries
Leaders of communist party
Most opposition is suppressed

14. Democracy
Leaders rule with consent of the people (popular sovereignty)
Comes from Greek words ‘demos’ = people, and ‘kratia’= rule
Two types:
Direct
Representative

15. Democracy Direct- citizens vote and decide on all issues directly
No country has direct
Can only occur in small groups
Representative- citizens elect reps to make decisions based on their needs
Republics have ALL officials elected
Ex’s: USA, France, UK
UK is a democracy with a constitutional monarch

16. Types of Government Review
Autocracy
Oligarchy
Democracy
Rule by one
Rule by group
Rule by all

17. Economic Systems There are 3 basic questions to ask:
What and how many goods & services are produced?
How should the above be produced?
Who gets the goods & services that are produced?
Each country answers differently…

18. Frank and Earnest on Economics

19. Frank and Earnest on Free Market

20. Traditional Economy
Rules & customs determined by habit, what the ancestors did
Roles passed down thru generations
Dad is farmer, son is a farmer
Not a lot of individual choice
People grow what they need to live
Only in limited places
Ex: Inuit society in Canada

21. Market Economy Decisions made by individuals and private groups
Supply & demand ppl choose what to buy so businesses make what ppl want
People choose what jobs they want & who they’ll work for
Free enterprise/ capitalism
Limited govn’t interference
NO one has a PURE market economy

22. Market Economy
Mixed Economy- free enterprise supported and regulated by govn’t
Govn’t keeps competition fair, trade free, supports public’s best interest
Ex: USA, Japan, Singapore

23. Command Economy Govn’t owns and directs the economy
Decisions about production & distribution of goods & services
Controls ‘means of production’ (land, labor, capital)
Goal is to distribute G&S equally
Taxes support social services to all citizens

24. Command Economy Socialism (France, Canada)
Equally distribute wealth is goal
Public ownership of means of production
Typically found in democratic nations
Ppl elect reps who make economic decisions on their behalf
Can be under range of free enterprise
If you make a surplus, you can keep the extra instead of “sharing” it

25. Command Economy Communism
Equally distribute wealth, goods, get rid of social classes (Marxism)
Govn’t makes all economic decisions
Typically by force/coercion, no voice of ppl Communist Party
Most decline w/o free decision making/ incentives (USSR)
Ex’s: China & Vietnam now allow some free enterprise to promote growth; North Korea does not

26. Controlled by government Government controls Basic industries
Communism (Command)
Capitalism(Demand)
Socialism
Controlled by government
Government controls Basic industries
Controlled by market place