1. Governmental Systems and Economy EOC Prep

2. Direct Democracy  Maximum political participation  Citizens determine the legislative process by voting directly  Ancient Greece

3. Republic (Representative Democracy)  Elected officials representing a group of people  Rome  United States

4. Parliamentary Democracy  Legislative Branch elects the leader  prime minister or chancellor  Great Britain  Canada

5. Totalitarian (Authoritarian)  Government that is centralized and dictatorial and requires complete subservience to the state  North Korea  Nazi Germany

6. Theocracy  Form of government based on religion where the clergy have sovereign power  Iran  Vatican

7. Monarchy  Government in which sovereignty is embodied in one or several individual(s) reigning until death or abdication  King  Queen

8. Constitutional Monarchy  King or queen acts as Head of State  The ability to make and pass legislation resides with an elected Parliament  Great Britain

9. Oligarchy  Small group of people having control of a country, organization, or institution  Russia

10. Communism  All economic and social activity is controlled by a totalitarian state  Property owned by the community as part of the government

11. Socialism  Social and economic system characterized by social ownership of the means of production and co-operative management of the economy

12. Market Economy (Capitalism)  Investment, production, and distribution are based on supply and demand  No government regulation

13. Mixed Economy  Economic system that features characteristics of both capitalism and socialism  United States

14. Fiscal Policy  Government power to tax and spend to influence the economy

15. Monetary Policy  Government control of the following:  Supply of Money  Inflation  Interest Rates

16. Federal Reserve  Central banking system of the United States -1913  Regulates Credit  Regulates Banks  Controls Interest Rates  Money Supply (Inflation)  Board of Governors  7 Members  Appointed by President  Confirmed by Senate  14 Year Terms

17. Laissez Faire Economics  Hands Off!  Limited or no control  Government  Economy

18. Federal System  Federal Government  State Governments  County Governments  City Governments  United States  Australia

19. Confederal System  Union of political units for common action in relation to other unit  Articles of Confederation  European Union

20. Unitary System  Government is a sovereign state governed as a single entity.  Great Britain

21. Foreign Policy  Policy pursued by a nation in its dealings with other nations  Political Realism  Countries always do what is in their best interests  Political Idealism  Countries will usually do the right thing