Presentation on theme: "Chapter Three Population and Culture"— Presentation transcript:
1 Chapter Three Population and Culture Section TwoPolitical and Economic Systems
2 Types of Economic Systems Any economic system must answer three basic questions:What and how many goods and services will be produced?How will these products be produced?How will these products and the wealth from their sale be distributed?
3 Traditional EconomyIn many parts of the world, especially in rural and less developed areas, nearly all goods and services are consumed by one family or village.There is little left over for trade.These economies are also called subsistence economies.There is little need for markets, because there are almost no excess goods to sell.
4 Market EconomyThis system gives great freedom to individuals and groups.It is also called a free enterprise system or capitalist market economy.Private individuals or groups decide what will be produced, how much will be produced, and the prices that will be charged, for goods and services.These decisions are influenced by the “law of supply and demand”.The main motivation is for each individual or group to increase their economic well-being.In “pure” capitalism, the government would play no role in the economy.In the U.S. and other countries, the government does have some influence. It operates the post office, police, fire dept. and public schools. It also regulates employee safety and health.
5 Command EconomyAn economy controlled by a single, central government is a command economy.Nearly all decisions are made by an authoritarian leader.The government decides what and how much will be produced. It also decides how much will be charged for goods and services.One example of a command economy is communism.Under a communist system, the government owns and operates all the major farms, factories, utilities and stores. Government planners decide what will be produced and how much it will cost.
6 Mixed EconomySome nations have a mix of traditional, command, and market economies.Socialism is an example of this sort of economy.The basic philosophy of socialism is that the government should own and run some basic industries, such as transportation, communications, banking, coal mining, and the steel industry.Private enterprise operates most other parts of the economy.Socialists believe that wealth should be distributed more equally and that everyone is entitled to certain goods and services.Socialist countries are sometimes called “welfare states” because they provide social services such as housing, health care, child care, and pensions.To pay for these services, these countries usually impose high taxes on their citizens.
7 Types of GovernmentGovernment- the institution through which society makes and enforces its public policies and provides for its common needsKeeping order within societyProtecting the society from outside threatsProviding some services to its people
8 Government Structure Every country contains smaller units These may be called states, provinces, or republicsGovernment can be classified according to the relationship between the smaller units and the central government.There are three classifications of government according to how a government is structured. All nations follow one of these sorts of structure
9 Unitary System The central government runs the system The central government makes laws for the entire nationLocal governments have only those powers that the central government gives to themGreat Britain and Japan are examples of Unitary Systems
10 FederationSome powers are given to the national government and other powers are reserved for more local governmentsThe United States is a federationOur Constitution outlines the powers given to the federal and state governments
11 ConfederationSmaller political units keep their sovereignty and give the central government only very limited powers, usually in the areas of defense and foreign commerceIn the 1860’s the southern states separated from the United States and formed the Confederate States of America
12 Government AuthorityThere are five classifications of government according to how it exercises its authority
13 Authoritarian Leaders hold all, or nearly all, political power Until modern times, most countries had this sort of government
14 DictatorshipAn authoritarian form of government in which power is concentrated in a small group or even a single personMost common form of authoritarian government todayMost dictators use military force or political terror to gain and exercise powerPeople are not free to express their own opinions
15 Totalitarianism The most extreme form of dictatorship The government controls every part of society: politics, economy, and personal livesNazi Germany under Hitler and the Soviet Union under Stalin are examples of this
16 MonarchyThe most common kind of authoritarian rule throughout most of historyMonarchs: kings, queens, pharaohs, shahs, sultans, emperors, inherit their positions by being born into a ruling familyIn the past monarchs ruled as dictators, today most monarchs rule with limited or little power called a constitutional monarchyReal power rests with a lawmaking body and the monarch serves as a national symbolUnited Kingdom is an example of this today
17 DemocracyAny government where people have the power to chose their leaders and set government policy is a democracyA constitutional monarchy can also be a democracyAlmost all democracies today are representative democraciesEligible adult citizens elect representatives to make the country’s laws
18 The World’s CountriesThere are over 200 independent countries in the world todayFour characteristics which define a country are:Clearly defined territoryPopulationSovereigntyGovernment
19 Territory Territory includes: Land Water Natural resources Largest nation in area: RussiaSmallest nation in area: Vatican CityResources can be more important than area.Some small nations have important resources.This has been the cause of many wars over the centuriesNational boundaries are sometimes defined by rivers or mountains.Most are defined by treaties or agreements
20 PopulationPopulation size does not determine the existence of a countrySome countries have large areas of land, but small populations: Canada and AustraliaSome countries have small areas of land, but many people and densely populated: Japan and the NetherlandsSome have great diversity in their population: United States and IndiaSome populations share a similar culture and background: Sweden and GreeceCitizens are usually assured protection by their governments. In return they pay taxes, serve in the military, or carry out other obligations.
21 Sovereignty Sovereignty- A nations freedom from outside control. It can rule itself by establishing its own policies and determining its own course of action.A sovereign nation can act independently, deal equally with other sovereign nations, and protect its territory and citizens.Some nations benefit from their geography to help maintain their sovereignty: United Kingdom and SwitzerlandSome nation’s geography makes it difficult to defend: Belgium and Poland
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