1. Political and Economic Systems
Nuts and Bolts

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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?