Types of government and economy #5 Flashcards
constitution
written plan for government (most countries have one)
Democracy
‘Rule by the people’ - citizens choose people in government who make decisions
Authoritarian Regime
One person or a small group hold power; do not answer to people
Direct Democracy
citizens vote as individuals on issues instead of elected representatives
Representative Democracy
People choose leaders to represent them, make decisions for them
Republic
Citizens choose the head of government (U.S., France, South Korea)
Constitutional Monarchy
Monarch with little power in government
Citizens elect law-making body
Members of law-making body choose Prime Minister to be head of gov. (U.K., Japan, )
Absolute Monarchy
King or queen has all the power; decision makers in government not elected by citizens (Saudi Arabia)
Dictatorship
Rule by force, decision makers in government not elected by citizens, not many rights for citizens
globalization
Development of a worldwide culture with an interdependent (depending on others) economy
Growing connections based on trade
Economy
Way nations use and manage resources
Each nation has a different way of deciding how to use and manage resources
Consumers
Producers
People who buy and use products
Owners and workers who make products
Traditional Economy
Individuals decide what to consume and produce
Choices based on custom and habit
- Goods are exchanged by BARTER (Trade ) not money
Economic
systems
What goods and services to produce
How to produce them
Who will receive them
Command Economy
Government makes economic decisions about resources (makes products and sets prices)
Individuals have little freedom to decide what to consume and produce
Also called communism
Market Economy
(Capitalism)
Individuals make decisions about what to consume and produce
Businesses make what they think customers want
Mixed Economy
Many economic decisions are made by government (set SOME prices)
Individuals get to make SOME decisions
Also called socialism
Developed Country
Nations with many industries and more advanced technology
Make money many different ways
Workers have high incomes
Developing Country
Nations with few industries and simple technology
Mostly make money by agriculture (farming)
Workers have low incomes
supply
demand
The amount of a product that is available for sale
The amount of a product that people are willing to buy
Law of Supply and Demand
Determines the price of a product
When demand for a product is high, and supply of product is low, price is high
When demand for a product is low, and supply of product is high, price is low
