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Government and Economics: A Comprehensive Overview

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Explore different types of government, levels of governance, and economic systems around the world. Learn about autocracy, oligarchy, democracy, traditional, command, market economies, and mixed economies.

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Government and Economics: A Comprehensive Overview

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  1. Chapter 4The Human World Section 3 Government & Economics

  2. I. Government • Institution through which a society – • Maintains social order • Provides social services • Ensures national security • Supports its economic well-being

  3. Levels of Government • Unitary System • Gives all key powers to the national or central government • Federal System • Divides the power of government bw the national and state govt

  4. Types of Government • 3 categories – ask the question….. • “Who governs the state?” • Autocracy – rule by one person • Oligarchy – rule by a few people • Democracy – rule by many people

  5. AutocracyRule by one person • Oldest and most common form of govt • Most autocrats receive power through inheritance or ruthless use of military or police control • Suppress political opposition

  6. AutocracyRule by one person • Ex: Absolute or Totalitarian dictatorships • One person seeks to control all aspects of social and economic life • Govt is not responsible for the people • People have no power to limit rulers’ actions • Adolf Hitler (Nazi Germany) • Benito Mussolini (Italy) • Joseph Stalin (Soviet Union)

  7. AutocracyRule by one person • Ex: Monarchy • King or Queen exercises the supreme power of the govt • Usually inherit their positions • Absolute Monarchs: have complete and unlimited power to rule the people • Constitutional Monarchs: share governmental powers with elected legislatures or serve as ceremonial leaders

  8. OligarchyRule by a few people • Small group holds power • Group derives its power from • Wealth • Military power • Social position • Religion • And/or combination of these elements • Suppress political opposition

  9. OligarchyRule by a few people • Many times both dictatorships and oligarchies claim they rule for the people • But only give the illusion and no actual commitment is made to support the people • Ex: Communist China

  10. DemocracyRule by many people • System of government where leaders rule with the consent of the citizens • Latin (Demos=“the people”) + (kratia=“Rule”) • Govt by the many not the FEW

  11. DemocracyRule by many people • Ex: Representative Democracies • People elect representatives with the responsibility and power to make laws and conduct govt • Called either: • Council • Legislature • Congress • Parliament

  12. DemocracyRule by many people • Ex: Republics (US & France) • Voters elect all major officials, who are responsible to the people • Head-of-State – President • Not every democracy is a republic • ie: United Kingdom – democracy with a monarch

  13. II. Economic Systems • The financials of a country • All Economic Systems must make three basic economic decisions….. • What & how many goods and services should be produced? • How they should be produced? • Who gets the goods and services that are produced?

  14. Economic Systems • There are 3 major types of ES • Traditional ES • Command ES • Market ES • Mixed Economy

  15. Traditional ES • Habit and custom determine the rules for all economic activity • You behaved based on customs and traditions • Hunter and gatherer • Today: practiced in very limited parts of the world

  16. Command ES • The govt owns or directs the means of production and controls the distribution of goods • Means of Production – • Land • Labor • Capital (machinery, factories) • Business managers

  17. Command ES • The idea is the decisions made will in the end benefit all of society and not just a limited few • The intent is to distribute goods equally • However, citizens have no voice in how tax money is spent

  18. Command ES • Ex: Command ES is either called Socialism or Communism dependent on how involved govt is • Communism – the govt has complete and total control over the economic system • The fear……..that wo free decision making businesses will not work for the people • ie: Soviet Union

  19. Command ES • Socialism – allows free enterprise alongside govt run activities • Three main goals: • Equal distribution of wealth • Society’s control, through its govt, of all major decisions about production • Public ownership of most land, factories and other means of production Democratic socialism – people have basic human rights even though the govt controls certain industries

  20. Market ES • Individuals and private groups make decisions about what to produce • People decide what they will and will not purchase and what job they will hold • Based on the idea of free enterprise or capitalism • Idea that private individuals or groups have the right to own property or businesses and make a profit with only limited govt interference

  21. Market ES • No country in the world has a PURE market ES, the next alternative is….. • Mixed economies – one in which the govt supports and regulates free enterprise through decisions that affect the marketplace • Govt’s responsibility is to keep the economic system fair

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