1. Government Notebook What must be in the notebook: Chapter Vocabulary
Important questions and answers from the chapter
You may include any other notes from readings, lectures, etc.

2. What is Government?
Chapter 1

3. Chapter 1 and 23 Government Public policy Legislative power
Executive power
Judicial power
Constitution
Capitalist
Free enterprise system
Socialism
Centrally planned economy
Communism

4. What Is Government?
Government is the institution through which a society makes and enforces its public policies.
A government has 3 basic powers:
legislative – power to make laws
executive – power to enforce laws
judicial – power to interpret laws

5. The Purpose of Government
The main purposes of government are described in the Preamble of the Constitution of the United States:
“We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.”

6. How Can Governments be Classified
Governments can be classified by three different standards:
(1) Who can participate in the governing process.
(2) The geographic distribution of the governmental power within the state.
(3) The relationship between the legislative (lawmaking) and the executive (law-executing) branches of the government.

7. Classification by Who Can Participate
Democracy
In a democracy, supreme political authority rests with the people.
A direct democracy exists where the will of the people is translated into law directly by the people themselves.
In an indirect democracy, a small group of persons, chosen by the people to act as their representatives, expresses the popular will.
Dictatorship
A dictatorship exists where those who rule cannot be held responsible to the will of the people.
An autocracy is a government in which a single person holds unlimited political power.
An oligarchy is a government in which the power to rule is held by a small, usually self-appointed elite.

8. Classification by Geographic Distribution of Power
Unitary Government
A unitary government has all powers held by a single, central agency.
Confederate Government
A confederation is an alliance of independent states.
Federal Government
A federal government is one in which the powers of government are divided between a central government and several local governments.
An authority superior to both the central and local governments makes this division of power on a geographic basis.

9. Presidential and Parliamentary Governments
Classification by the Relationship Between Legislative and Executive Branches
Presidential and Parliamentary Governments

10. Types of Economic Systems
Chapter 23
Types of Economic Systems

11. Free Enterprise System
The free enterprise system is an economic system characterized by private ownership of capital goods.
Characteristics of a Free Enterprise System
Private Ownership
Profit
Individual Initiative
Competition

12. Laissez-Faire Theory and Mixed Economies
Laissez-faire theory holds that government should play a very limited, hands-off role in the economy and society.
According to this theory, the only proper role of government in economic affairs is to promote and protect the free play of competition and the operation of the laws of supply and demand.

13. A Mixed Economy
Economists usually describe an economy that combines private enterprise and governmental participation as a mixed economy.
The American economy is a mixed economy.
Government at all levels in American society has some influence on the economy.

14. What is Socialism?
Socialism is an economic and political philosophy based on the idea that the benefits of economic activity — wealth — should be equitably distributed throughout a society.
Socialists emphasize cooperation and social responsibility as ways to achieve a more equitable distribution of both income and opportunity, thus reducing great differences between rich and poor.

15. Characteristics of Socialism
Nationalization
Placing enterprises under government control, often by taking over privately owned industries, is called nationalization.
Public Welfare
Socialists aim to guarantee the public welfare by providing for the equal distribution of necessities and services.

16. Centrally Planned Economy
Taxation
Because social welfare services are quite expensive, taxes in socialist countries tend to be high.
Centrally Planned Economy
In a centrally planned economy, government officials plan how an economy will develop over a period of years. A democratic socialist economy may or may not have strict central planning.

17. Pros and Cons of Socialism
Socialists say that it is fairer to supply everyone with basic needs, such as medical care.
Socialists argue that it is morally superior to capitalism because it evens out inequalities.
Defenders of socialism also argue that it gives workers and ordinary citizens greater control of their everyday lives.
Cons
Critics say socialistic countries have a tendency to develop too many layers of bureaucracy.
In the eyes of socialism’s critics, the smooth running of an economy is too complex to be directed by central planners.
Another criticism is that socialism deprives people of the freedom to decide for themselves how to use their income.

19. COMMUNISM
Communism is often called a collectivist ideology, which calls for the collective, or state, ownership of land and other productive property.
1. Karl Marx’s ideas
To Marx, all of history was a struggle between social classes competing for control of productive property.
2. The Nature of the State
Marx saw the state and its government as tools by which the capitalists maintained their order and privileges.
3. The Dictatorship of the Proletariat
Marx did not believe a “free, classless society” would initially be formed, but rather, in the transition an authoritarian state would represent and enforce the interest of the masses.

21. Characteristics of Communist Economies
1. Role of the Communist Party
In any communist-run nation, the communist party holds the decision-making power in both the government and the economy.
2.Central Planning
Government officials plan and supervise production in factories, farms, and stores.
3. State Ownership
Industrial enterprises, transportation, and other parts of the economy are also state-owned.
4. Collectivization
Collective or state ownership of the means of production is one pillar of communism. Collectivization is the process of merging small private farms into large government-owned agricultural enterprises.

22. Notebook Questions for Chapter 1,23 (answer these questions)
1-1 What are the basic powers every government holds?
1-2 What are the advantages and disadvantages of presidential and parliamentary systems?
23-3 Define Socialism and explain how it developed from the Industrial Revolution.
23-4 What are the Pros and Cons of Socialism?
23-5 What are the major characteristics of a communist economy?