section 3 government & economics chapter 4 the human world
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Section 3 Government & Economics
CHAPTER 4THE HUMAN WORLD
Institution through which a society – Maintains social order Provides social services Ensures national security Supports its economic well-being
I. 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
LEVELS OF GOVERNMENT
3 categories – ask the question….. “Who governs the state?”1. Autocracy – rule by one person2. Oligarchy – rule by a few people3. Democracy – rule by many people
TYPES OF GOVERNMENT
Oldest and most common form of govtMost autocrats receive power through inheritance or ruthless
use of military or police controlSuppress political opposition
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)
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
AUTOCRACYRULE BY ONE PERSON
Small group holds powerGroup derives its power from
Wealth Military power Social position Religion And/or combination of these elements
Suppress political opposition
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
OLIGARCHYRULE BY A FEW 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
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
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
DEMOCRACYRULE BY MANY PEOPLE
The financials of a countryAll Economic Systems must make three basic economic
decisions…..1.What & how many goods and services should be produced?2.How they should be produced?3.Who gets the goods and services that are produced?
II. ECONOMIC SYSTEMS
There are 3 major types of ES1.Traditional ES2.Command ES3.Market ES
1. Mixed Economy
ECONOMIC SYSTEMS
Habit and custom determine the rules for all economic activity
You behaved based on customs and traditionsHunter and gatherer Today: practiced in very limited parts of the world
TRADITIONAL 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
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 equallyHowever, citizens have no voice in how tax money is spent
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
COMMAND ES
Socialism – allows free enterprise alongside govt run activities
Three main goals:1.Equal distribution of wealth2.Society’s control, through its govt, of all major decisions
about production3.Public ownership of most land, factories and other means of
productionDemocratic socialism – people have basic human rights even
though the govt controls certain industries
COMMAND 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
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
MARKET ES
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