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

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

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

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

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

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?