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Section 3 Government & Economics CHAPTER 4 THE HUMAN WORLD.

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1 Section 3 Government & Economics CHAPTER 4 THE HUMAN WORLD

2  Institution through which a society –  Maintains social order  Provides social services  Ensures national security  Supports its economic well-being I. GOVERNMENT

3  Unitary System  Gives all key powers to the national or central government  Federal System  Divides the power of government bw the national and state govt LEVELS OF GOVERNMENT

4  3 categories – ask the question…..  “Who governs the state?” 1.Autocracy – rule by one person 2.Oligarchy – rule by a few people 3.Democracy – rule by many people TYPES OF GOVERNMENT

5  Oldest and most common form of govt  Most autocrats receive power through inheritance or ruthless use of military or police control  Suppress political opposition AUTOCRACY RULE BY ONE PERSON

6  Ex: Absolute or Totalitarian dictatorships  One person seeks to control all aspects of social and economic life  Govt is not responsible for the people  People have no power to limit rulers’ actions  Adolf Hitler (Nazi Germany)  Benito Mussolini (Italy)  Joseph Stalin (Soviet Union) AUTOCRACY RULE BY ONE PERSON

7  Ex: Monarchy  King or Queen exercises the supreme power of the govt  Usually inherit their positions  Absolute Monarchs: have complete and unlimited power to rule the people  Constitutional Monarchs: share governmental powers with elected legislatures or serve as ceremonial leaders AUTOCRACY RULE BY ONE PERSON

8  Small group holds power  Group derives its power from  Wealth  Military power  Social position  Religion  And/or combination of these elements  Suppress political opposition OLIGARCHY RULE BY A FEW PEOPLE

9  Many times both dictatorships and oligarchies claim they rule for the people  But only give the illusion and no actual commitment is made to support the people  Ex: Communist China OLIGARCHY RULE BY A FEW PEOPLE

10  System of government where leaders rule with the consent of the citizens  Latin (Demos=“the people”) + (kratia=“Rule”)  Govt by the many not the FEW DEMOCRACY RULE BY MANY PEOPLE

11  Ex: Representative Democracies  People elect representatives with the responsibility and power to make laws and conduct govt  Called either:  Council  Legislature  Congress  Parliament DEMOCRACY RULE BY MANY PEOPLE

12  Ex: Republics (US & France)  Voters elect all major officials, who are responsible to the people  Head-of-State – President  Not every democracy is a republic  ie: United Kingdom – democracy with a monarch DEMOCRACY RULE BY MANY PEOPLE

13  The financials of a country  All Economic Systems must make three basic economic decisions….. 1.What & how many goods and services should be produced? 2.How they should be produced? 3.Who gets the goods and services that are produced? II. ECONOMIC SYSTEMS

14  There are 3 major types of ES 1.Traditional ES 2.Command ES 3.Market ES 1.Mixed Economy ECONOMIC SYSTEMS

15  Habit and custom determine the rules for all economic activity  You behaved based on customs and traditions  Hunter and gatherer  Today: practiced in very limited parts of the world TRADITIONAL ES

16  The govt owns or directs the means of production and controls the distribution of goods  Means of Production –  Land  Labor  Capital (machinery, factories)  Business managers COMMAND ES

17  The idea is the decisions made will in the end benefit all of society and not just a limited few  The intent is to distribute goods equally  However, citizens have no voice in how tax money is spent COMMAND ES

18  Ex: Command ES is either called Socialism or Communism dependent on how involved govt is  Communism – the govt has complete and total control over the economic system  The fear……..that wo free decision making businesses will not work for the people  ie: Soviet Union COMMAND ES

19  Socialism – allows free enterprise alongside govt run activities  Three main goals: 1.Equal distribution of wealth 2.Society’s control, through its govt, of all major decisions about production 3.Public ownership of most land, factories and other means of production Democratic socialism – people have basic human rights even though the govt controls certain industries COMMAND ES

20  Individuals and private groups make decisions about what to produce  People decide what they will and will not purchase and what job they will hold  Based on the idea of free enterprise or capitalism  Idea that private individuals or groups have the right to own property or businesses and make a profit with only limited govt interference MARKET ES

21  No country in the world has a PURE market ES, the next alternative is…..  Mixed economies – one in which the govt supports and regulates free enterprise through decisions that affect the marketplace  Govt’s responsibility is to keep the economic system fair MARKET ES

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