1. Types of Economies and Governments

2. Today’s Mission Create 2 posters
1 poster will include the three different types of economies
Market (Capitalism), Mixed (Socialism) and Command (Communism)
1 poster will include…
Constitutional Monarchy
Absolute Monarchy
Presidential Democracy
Parliamentary Democracy
Dictatorship
Theocracy

3. What to Include Economies
Please include a definition that makes sense to you! Use resources from around the room or your phone!
Must also draw a picture representing the term and the definition

4. What to Include Governments Definition of each type of government
A specific example/country of each type (past or present)

5. Market/Capitalism
Business owners make decisions on what to produce and how much it will cost
Private ownership

6. Mixed/Socialism Welfare state – care for all
Both private ownership and gov’t control of major industries (utilities, transportation)

7. Command/Communism Government ownership of property
Gov’t makes all decisions

8. Traditional Economy
A traditional economy is an economy based on custom and tradition/command.
The decisions are based on tradition of the community or family.

9. Practice Question 1.) When the government controls all
major industries and decides what
products will be produced and how many of each type of product will be produced, what type of economy is described?
A. mixed
B. market
C. traditional
D. command

10. Practice Question
2.) The economist Adam Smith was an Enlightenment thinker. In his writings, he described how market systems worked and expressed his belief in laissez-faire economics. His ideas influenced how people viewed their relationship with their government. Supporters of Smith wanted government to
A. end universal suffrage.
B. uphold the divine right of kings.
C. protect their freedoms and property.
D. provide strict economic regulations on business.

11. Practice Questions
3.) In a certain country, decisions regarding production and consumption of goods are based upon customs, beliefs, rituals, and habits. Over time, the economic system changes to one in which production decisions are based on competition and consumer choice.
How has the economic system of this country changed?
A. from a mixed economy to a command economy
B. from a command economy to a mixed economy
C. from a traditional economy to a market economy
D. from a market economy to a traditional economy

12. Practice Question
4.). In a certain country, all decisions concerning the production of goods and services are made by the government. However, following a political revolution, a new economic system is set up in which some decisions regarding production of goods and services are made by the government and others are made by individuals and private companies.
How has the economy of this country changed?
A. from a mixed economy to a market economy
B. from a command economy to a mixed economy
C. from a market economy to a traditional economy
D. from a traditional economy to a command economy

13. Practice Question
5.) In a command economy, the question of what goods to produce is primarily determined by
A. cultural traditions.
B. decisions by individuals.
C. government plans.
D. corporate policies.

14. Practice Question
6.) Economic systems answer the question of how goods and services are produced. What is one way a
country could change from a command economy to a market economy?
A. if the government takes control of family-owned farms
B. if privately owned banks become subject to stricter
regulation
C. if agricultural and factory workers are required to join
labor unions
D. if industries that had been owned by the government
become privately owned

15. Practice Question
7.) In order to stimulate the economy, the United States government lowers personal income tax rates. Why would this action be expected to promote economic growth?
A. Businesses would be required to hire more employees.
B. Manufacturers would have to pay more for raw materials.
C. The government would be less likely to engage in deficit spending.
D. Consumers would have more money available to spend on goods and services.

16. Presidential Democracy
People can vote for both the legislative (law-making) branch and executive branch (President).
Example: United States

17. Parliamentary Democracy
People vote for the legislature (parliament)
Legislature selects the Prime Minister from a member of parliament 
Example: Great Britain

18. Absolute Monarchy
King or Queen has total power – not limited by rules, laws or constitution
Example: Louis XVI of France

19. Constitutional Monarchy
Power passed down through family (hereditary)
King/Queen power limited by a constitution
Belgium (also has a parliamentary democracy)

20. Theocracy
A government ruled by laws of a religion
Iran

21. Dictatorship Ruler has total power
Usually rules through fear – backed by military
Example past: Hitler, Mussolini
Example today: Kim Jong-un (North Korea)

22. Practice Question
1.) A group of citizens organizes a peaceful march through the streets of their nation’s capital. They carry signs calling for the nation’s leader to resign. Describe how likely this type of protest could be held in a presidential democracy and in a dictatorship. Explain the reason for these differences. (2 points)

23. orange - parliamentary republics
green - presidential republics, executive presidency linked to a parliament
yellow - presidential republics, semi-presidential system
blue - presidential republics full presidential system
red - parliamentary constitutional monarchies in which the monarch does not personally exercise power
magenta - constitutional monarchies in which the monarch personally exercises power, often (but not always) alongside a weak parliament
purple - absolute monarchies
brown - republics where the dominant role of a single party is codified in the constitution
dark green - countries that constitutional provisions for government have been suspended
gray - countries that does not fit in any of the above listed systems

24. Country Information