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Chpt 3 Sec 2

Political and Economic Systems

QuestionAnswer
sovereignty a nation's freedom from outside control
unitary system a system of government in which one central government holds most of the political power
federation Federalism (federal system). Different levels of governments (Federal, state, local) like the United States system. Powers are structured and shared.
confederation Separate nations or states that kinda sorta work together. Example: European Union.
authoritarian a system of government in which the leaders hold all political power
dictatorship a system of government in which absolute power is held by a small group or one person
totalitarianism a system of government in which a central authority controls all aspects of society
monarchy a system of authoritarian government. Rule by a royal family - whose position is usually inherited
democracy a system of government in which the people are invested with the power to choose their leaders and determine government policy
traditional economy an economic system in which families produce goods and services for their own use, with little surplus and exchange of goods;also known as a subsistence economy
market economy an economic system in which decisions about production, price, and other economic factors are determined by the law of supply and demand
command economy All production decisions are controlled by the government (a central planning agency tells companies what to make, and how much to produce). Examples: former Soviet Union, North Korea
mixed economy a combination of economic activities. Some free market and some command economies. United States is an example.
Free Market Consumers free to buy anything; produces are free to make any product
republic Representative Democracy - Democracy carried out by elected leaders (people vote)
Created by: mrsbbaum
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