1. Systems of Government Unitary system- gives all key powers to the national or central government. –Ex. United Kingdom and France Federal system- divides the powers of government between the national government and the state or provincial governments. –Ex. United States

2. Autocracy Any system of government in which the power and authority to rule belong to a single individual. –Forms: Dictatorship, Monarchy (absolute and constitutional) –Ex. Hitler & Nazi Germany, Stalin & USSR, Castro & Cuba, Saudi Arabia, United Kingdom, Japan

3. Oligarchy Any system of government in which a small group holds power. –Gets its power from military, wealth, or religion –Ex. China, Russia, Afrikaaners during Apartheid

4. Democracy System of government in which leaders rule with the consent of the citizens –Types: Direct, Representative, or Republic –Ex. United States, Canada, & United Kingdom

5. Socialism System allows for equal distribution of wealth, society’s control of major decisions, and public ownership of land, factories and businesses. Ex: some aspects of Western European Countries…Venezuela?

6. Communism Communism- requires strict governmental control of both society and economy –Ex: China, Cuba, North Korea

7. Traditional Economy Habit and custom determine the rules for all economic activity –Behavior is defined by the customs of their elders and ancestors

8. Market Economy Individuals and private groups make decisions about what to produce and buy –“Supply and Demand” –Sometimes called “Capitalism” –Free Enterprise- idea that private individuals or groups have the right to own property or businesses and make a profit with only limited gov. interference

9. Mixed Economy Government supports and regulates free enterprise through decisions that affect the marketplace

10. Command Economy The government owns or directs the means of production (land, labor, machinery, factories, etc.) and business managers and controls the distribution of goods.

11. LEVELS OF ECONOMIC DEVELOPMENT PRIMARY LEVEL: using the Earth’s natural resources (ex. Farming, timber, fishing, mining)

12. Secondary Industries Developing countries begin to manufacture products from primary industries. Secondary industries mark an advancing economy in developing countries. Most developed countries have a well established industrial base.

13. Tertiary Industries Economies have reached a stage where selling a product or a service is a major part of the economy. These are generally found in developed economies.

14. Quaternary Industries Economies have reached the technological level. People are involved in mass consumption of goods and services. Found in countries with the highest level of economic development