1. The Economy and Politics
CHAPTER 13
The Economy and Politics
Section 1: The Economic Institution
Section 2: The Political Institution

2. SECTION 1
The Economic Institution
Question:
What are the similarities and differences between capitalism and socialism?

3. The Economic Institution
SECTION 1
The Economic Institution
ECONOMIC MODELS
Capitalism
Socialism
factors of production owned by the government
factors of production owned by individuals
industrial and postindustrial societies
forces of profit and competition regulate economic activity
economic activity regulated by the government
“pure” forms are ideal types
minimum government interference
pure form is communism

4. SECTION 2
The Political Institution
Question:
What are the major characteristics of the U.S. political system?

5. dominated by two major political parties—Democrats and Republicans
SECTION 2
The Political Institution
Major Characteristics of the U.S. Political System
dominated by two major political parties—Democrats and Republicans
consists of three branches of government—the executive, legislative, and judicial
includes interest groups and PACs, which help groups with minority views influence government decisions
includes public participation although voter participation varies and is relatively low overall
has proportional representation, but debate exists over who holds power

6. Chapter Wrap-Up CHAPTER 13
1. How do capitalism and socialism differ in terms of ownership of the factors of production and in terms of regulation of economic activity?
2. How has e-commerce changed the American economy?
3. How do democratic and authoritarian governments differ in the ways they use power?
4. What methods do interest groups and political action committees use to win political and public support for their issues?