2. Types of Government Chapter 1 Section 3

3. Aristotle Three types of Government Autocracy: rule by one person Oligarchy: rule by a few people Democracy: rule by many

4. Autocracy Totalitarian Dictatorship: Ideas of a single rule are glorified. Hitler, Mussolini, Stalin.

5. Monarchy King, Queen, emperor exercise supreme powers of the government. Ex(King Abdulla of Saudi Arabia.

6. Constitutional Monarchy Monarchs that share governmental powers with elected legislatures, serve main as ceremonial leaders.

7. Oligarchy Small group holds power. Wealth, military power and social position often are reasons for their position.

8. Democracy Any system of government in which rule is by the people From the Greek word “demos” meaning people and “kratia” meaning rule.

9. Direct Democracy Only in small towns now. No countries have this any more. Used in ancient Greece.

10. Representative Democracy “Indirect” democracy.

11. Characteristics of Democracy Individual Liberty Majority rule with Minority Rights Free Elections Competing Political Parties

12. Individual Liberty Not totally free, but allowed to do as one wishes without infringing on others.

13. Majority rule Still protect minorities rights. Endo v. United States

14. Endo v. US Got rid of detention centers due to prejudice. (Japanese Americans WWII) US paid $20,000 to those who had relocated in 1988.

15. Free Election “One person-one vote” Candidates can express views freely in order for people to make their decision.

16. Competing Political Parties Political Party: group of people with broad common interests who organize and nominate candidates for office, win elections, conduct government, and determine public policy.

17. “Soil of Democracy” Most places democracy fails. Must have certain things within an environment.

18. Active Citizen Participation Citizens must be informed and active for democracy to work.

19. A Favorable Economy “Free enterprise” means people can control their economic decisions. Keeps them informed and interested.

20. Widespread Education Educated citizens so they can read, be informed, and make responsible decisions.

21. Strong Civil society A huge network of voluntary associations, economic groups, religious groups etc.

23. Social Consensus Have basic outlines of values that everyone agrees with and follows.

24. Economic Theories Chapter 1 Section 4

25. Economics The study of human efforts to satisfy seemingly unlimited wants through the use of limited resources. Study of production and consumption of goods.

26. Economics The study of human efforts to satisfy seemingly unlimited wants through the use of limited resources. Study of production and consumption of goods.

27. Resources Land, water, minerals and trees Skills, knowledge and physical capabilities

28. Role of Economic Sources Three Big Decisions governments have to make. 1) what and how much should be produced 2) how goods and services should be produced 3) who gets the goods and services that are produced

29. Three major economies Capitalism Socialism Communism

30. CAPITALISM 1)Private ownership and control of property and economic resources 2)Free enterprise 3)Competition among businesses 4) Freedom of choice 5)Possibility of profits

31. Free Market Buyers and sellers were free to make unlimited economic decisions. People could work for economic gain. Wealth should be used aggressively.

32. Adam Smith Scottish philosopher who wrote The Wealth of Nations. Laissez-faire

33. Laissez Faire “to let alone” Limited government role Hands off except ensuring free competition

34. Competition Supply and Demand Free competition Buyers and Sellers control the market.

35. Example

36. Mixed-Market Economy America is not full-blown capitalist. Free enterprise is combined with and supported by government decisions in the marketplace. Free, fair, and protecting public interest.

37. Socialism Government owns the basic means of production. Determines the use of resources Distributes the products and wages Provides social services such as education, health care and welfare

38. Three main goals 1)Distribute wealth and economic opportunity equally among people. 2)Control of major decisions about production through society/government 3)Public ownership of most land, factories and other means of production.

39. Democratic Socialism People have basic human rights and some control of government officials through free elections Government control production Tanzania, Denmark, Norway, Sweden.

40. Communism Karl Marx The Communist Manifesto Class struggle: Bourgeoisie v. Proletariat “Workers of the World Unite!”

42. Command Economy Decisions are made in upper-levels of government and handed down to managers. State owns and controls everything: media, land, industry, natural resources, transportation.

43. China Government controls births, housing, industry.