1. 4.3 Economic and Political Systems
Geography

2. Vocabulary
Economy —a system for producing, distributing and consuming goods and services
Producer –owners and workers
Goods --products
Services – producers perform these for other people
Consumer –people who buy and use the goods and services
Capitalism –Most basic and non- basic businesses are privately owned. Workers produces the goods and services.
Socialism– the government owns most basic industries. It runs them for the good of society, not for profit.

3. Vocabulary
Communism– the central government owns all of the property. It controls all aspects of citizen’s lives including the prices of goods and services
Government—the system that sets up and enforces a society’s laws and institution.
Direct democracy– Everyone participated in running the day-to-day affairs of the group. Chiefs or elders decided what was right or what to do. Decisions were based upon the culture’s customs and beliefs.
Monarchy – a king or queen rules the government. The ruler inherits the throne by birth.
Constitution– a set of laws that define and often limit the government’s power. In a constitutional monarchy, the king or queen is often only a symbol of the country
Representative democracy—citizens elect representatives to run the country’s affairs. People indirectly hold power to gevern and rule. They elect representatives, who create laws.

4. Vocabulary
Dictator– a government leader who has almost total power. They decide what will happen in their countries. They make the laws. When dictators take over, they often make promises that sound good. Sometimes they keep their promises. Most times they do not.

5. List three services that producers can perform for people
Economic Systems
a system for producing, distributing and consuming goods and services
Owners and workers are producers
They make products called goods
Some products are really services that producers perform for other people.
Hair stylists
Provide hotel rooms
Heal diseases

6. Two categories of business
List the types of businesses that both basic and non-basic business contain.
Two categories of business
Basic business—essential for a nation to function
Transportation
Communication
Electricity
Non-basic industries—nice but not necessary. Create products like
Compact disks
Sports equipment.

7. List a basic and non-basic business
Services can also be basic and non-basic business
Basic—hospital
Non-basic—singing telegram companies

8. Describe Capitalism Three basic economic systems
Capitalism—basic and non-basic businesses are privately owned. Workers produce the goods or services.
When a company sells its products it earns profits, or money.
The owners deicide how much to pay workers and how to use profits.

9. Which countries are capitalists?
Successful companies supply goods or services that consumers need, want, and can afford.
United States
South Africa
Japan

10. Define Socialism Socialism—the government owns most basic industries.
Runs them for the good of society, not for profit
Decides how much to pay workers and how much to charge for goods
Uses profits to pay for services such s health and education
Non-basic industries and servies follow the capitalist model.

11. Name three countries that follow socialism
A few countries follow socialism or have socialistic programs These countries include:
Spain
Portugal
Italy

12. Define Communism and list three communist countries.
Communism—the central government owns all property for the benefit of its citizens.
Controls all aspects of citizens’ lives including prices of goods and services, how much is produced, and how much workers are paid.
Only a few countries follow communism
Cuba
China
North Korea

13. Define Direct Democracy
Political systems
Government is the system that sets up and enforces society’s laws and institutions. Come governments are controlled by few people. Others are controlled by many.
Direct Democracy
Everyone participated in running the day-to-day affairs of the group.
Chiefs or elders decided what was right or what to do
Decisions were based upon the culture’s customs and beliefs.

14. Define Monarch and list three country that follow this type of government
Monarchy—a king or queen rules the government
The ruler inherits the throne by birth.
Monarchies still exist today:
Sweden
Denmark
United Kingdom
Spain
Swaziland

15. Define Constitutional Monarchy
Monarchies
The rulers of these countries do n ot have the power their ancestors did. Instead, they are constitutional monarchs. Their countries have constitutions that define and often limit the government’s power.
In a constitutional monarchy, the king or queen is often only a symbol of the country.

16. Define representative democracy and name three countries who follow this type of government.
Citizens elect representatives to run the country’s affairs.
The people indirectly hold power to govern and rule
They elect representatives, who create laws.
If he people do not like what a representative does, they can refuse to re-elect that person
They can also wor to change laws they do not like.
United States
Canada
Israel

17. Define Dictatorship Dictatorship
Dictators decide what happens in their counties
They make the laws
They decide if there will be elections
When dictators take over, they often make promises that sound good.
Sometimes they keep their promises, but most times they do not.