political & economic systems 3-2. i. the world’s countries o a. almost 200 independent...
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Political & Economic Systems
3-2
I. The World’s Countries
O A. Almost 200 independent countries in the world today
O B. 4 specific characteristics that define a country:O 1. Territory – land, water, & natural
resources within its boundaries; boundaries can be natural divisions (rivers & mountains) and can be changed often (war & treaties)
O 2. Population – amount of people does not determine the existence of a country; citizens are usually guaranteed protection & in return usually pay taxes, serve in the military, or carry out other obligations
O 3. Sovereignty – nation’s freedom from outside control; it can rule itself; act independently & protect its territory
O 4. Government …
II. Types of Government
O A. Government StructureO 1. nearly every country contains smaller units
(states, provinces, etc.)O 2. unitary system – one central government that
makes laws for the entire nation (GB & Japan)O 3. federation – government where some powers
are given to the national government & some are given to local governments (USA)
O 4. confederation – smaller political units keep most of the power & the central government has limited powers
O B. Government AuthorityO 1. authoritarian government – leaders hold
all, or almost all, political powerO 2. dictatorship – power is concentrated in a
small group or even a single personO 3. totalitarianism – government tries to
control every part of society (most extreme form of dictatorship)…(Nazi Germany until Hitler’s reign)
O 4. monarchy – monarchs inherit their positions by being born into a ruling family (kings, pharaohs, sultans, etc.)
O 5. democracy – people choose their leaders & have the power to set government policy
III. Types of Economic Systems
O A. Traditional Economy – families produce goods & services for their own use (subsistence economy)
FAMILIES
PRODUCE FOR PERSONAL
CONSUMPTION
LITTLE SURPLUS
LITTLE EXCHANGE OF
GOODS
O B. Market Economy – system that gives great freedom to individuals and groups (free enterprise system)
DETERMINE PRICES &
PRODUCTION
CONSUMERS
LAWS OF SUPPLY & DEMAND
PRIVATE ENTERPRISE
GOVERNMENT
REGULATIONS
O C. Command Economy – system that is controlled by a single, central government; government decides prices, how much will be made, etc.
GOVERNMENT
OWNS BUSINESSES
OPERATES BUSINESSES
DETERMINES
PRODUCTION