Ch. 3 Economic & Political Systems
Terms
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- economy
- a system for producing, distributing, and consuming goods and services
- What are the three basic economic systems?
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1. traditional system - the people make or grow almost everything they need
2. free enterprise system - people own the businesses and companies. Prices are determined by market needs. Also called capitalism and market economy.
3. command system - the government controls how and what is produced and says how much it will cost. (socialist and communist) - What are the four categories of industries?
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1. Primary industry - gathers raw materials
2. Secondary industry - makes products
3. Tertiary industry - provides services
4. Quaternary industry - provides information technology such as internet, software, and cable service - What is a monarchy?
- In a monarchy, a king or queen rules the government. In modern times, most monarchies have constitutions which limit the power of the king or queen.
- What is a representative government?
- A representative government is a type of democracy in which the citizens elect certain people to represent them in taking care of the government decisions. It is also called a republic.
- What is a dictatorship?
- In a dictatorship, one person has almost complete power to rule as he or she wants. The people lose many of their rights. The dictator often rules by force.
- Name the five types of government systems.
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1. direct democracy
2. monarchy
3. representative government
4. dictator
5. communism - What are the differences in a developed country and one that is still developing?
- A developed country has lots of industries, good education opportunities, plenty of food, and good health care for its people. A developing country does not. Its people may go hungry or suffer from lots of disease.
- What are the two types of command economic systems?
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1. socialist system - Most basic industries are owned and controlled by the government.
2. communist system - All industry and business is owned and controlled by the government. - producers
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people who make products
examples - baskets, autos, pianos, shoe polish, video games - goods
- products made by producers for consumers
- services
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actions people perform for pay
examples - health care, shoe polishing, hauling freight - consumers
- people who buy goods and use services
- What is a direct democracy?
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A government in which all the citizens have a say in what happens.
example - a small town where the citizens meet and decide about everything.