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Political & Economic Systems

Political & Economic Systems. 3-2. I. The World’s Countries. A. Almost 200 independent countries in the world today B. 4 specific characteristics that define a country :

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Political & Economic Systems

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  1. Political & Economic Systems 3-2

  2. I. The World’s Countries • A. Almost 200 independent countries in the world today • B. 4 specific characteristics that define a country: • 1. Territory– land, water, & natural resources within its boundaries; boundaries can be natural divisions (rivers & mountains) and can be changed often (war & treaties)

  3. 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 • 3. Sovereignty – nation’s freedom from outside control; it can rule itself; act independently & protect its territory • 4. Government …

  4. II. Types of Government • A. Government Structure • 1. nearly every country contains smaller units (states, provinces, etc.) • 2. unitary system – one central government that makes laws for the entire nation (GB & Japan) • 3. federation – government where some powers are given to the national government & some are given to local governments (USA) • 4. confederation – smaller political units keep most of the power & the central government has limited powers

  5. B. Government Authority • 1. authoritarian government – leaders hold all, or almost all, political power • 2. dictatorship – power is concentrated in a small group or even a single person • 3. totalitarianism – government tries to control every part of society (most extreme form of dictatorship)…(Nazi Germany until Hitler’s reign) • 4. monarchy – monarchs inherit their positions by being born into a ruling family (kings, pharaohs, sultans, etc.) • 5. democracy – people choose their leaders & have the power to set government policy

  6. III. Types of Economic Systems • A. Traditional Economy – families produce goods & services for their own use (subsistence economy) FAMILIES PRODUCE FOR PERSONAL CONSUMPTION LITTLE SURPLUS LITTLE EXCHANGE OF GOODS

  7. LAWS OF SUPPLY & DEMAND • B. Market Economy – system that gives great freedom to individuals and groups (free enterprise system) CONSUMERS PRIVATE ENTERPRISE GOVERNMENT REGULATIONS DETERMINE PRICES & PRODUCTION

  8. C. Command Economy – system that is controlled by a single, central government; government decides prices, how much will be made, etc. GOVERNMENT OWNS BUSINESSES DETERMINES PRODUCTION OPERATES BUSINESSES

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