Political and Economic Systems World Geography Cy-Woods HS Economic Spectrum Less government More government Political Spectrum Political Systems • Tell us how power is distributed within a region. Democracy • People hold all political power. • Ex. Ancient Greece Democracy • Is the U.S. a democracy? Democracy Index Lighter = more democratic Political Spectrum Economic Spectrum Less government More government Democracy Republic • People have the power through elected representatives. • Ex. U.S., Germany, India Political Spectrum Economic Spectrum Democracy Less government More government Republic Theocracy • A system of government in which religious leaders rule in the name of God. • Ex. Iran (Vatican City) Political Spectrum Economic Spectrum Republic Democracy Less government More government Theocracy Absolute Monarchy • Absolute power among his or her people. • An absolute monarch wields unrestricted political power over the sovereign state and its people. • Ex: Saudi Arabia, Bahrain, Dubai Constitutional Monarchy • king or queen acts as Head of State. The ability to make and pass legislation resides with an elected Parliament, not with the Monarch • ex. United Kingdom, Belgium, Sweden, Norway Political Spectrum Economic Spectrum Constitutional Monarchy Republic Democracy Less government More government Absolute Monarchy Theocracy Dictatorship • An individual or group holds complete political power (by force.) • ex. North Korea (under Kim Jongil), Germany (under Hitler), Soviet Union (under Stalin) Totalitarian (Dictatorship) • Often times the people do vote, but it doesn’t matter who they vote for. • No term limits • Some do have popular support. Absolute Monarchy Theocracy Dictatorship/ Totalitarian Economic Spectrum Constitutional Monarchy Republic Democracy Less government More government Political Spectrum Name That Dictator! Name That Dictator! Name That Dictator! Name That Dictator! Name That Dictator! Name That Dictator Name That Dictator! Name That Dictator! Name That Dictator! Name That Dictator! Add communism Economic System • Tied to the country’s political system. • The way people produce and exchange goods and services. • 3 basic types: Modern Economic Spectrum Command Economy more government Socialism Free Enterprise less government Command Economy • Also known as communist economy • ex) Cuba and North Korea Command Economy • Government controls the factors of production. • determine job, own the land, etc. Command Economy • Government determines the distribution of goods and services. • ration food/supplies, who can own what Command Economy • Government provides all basic needs. • healthcare, shelter, etc. Free Enterprise (Capitalism) • Also known as market or capitalist economy • ex) U.S. Free Enterprise (Capitalism) • Private ownership of factors of production. • People own the land, businesses, money, etc. Free Enterprise (Capitalism) • Consumer demand controls production and distribution. • things are made because people want them • market Free Enterprise (Capitalism) • Government provides few/no basic needs. • social programs, welfare, etc. Socialism • Also known as mixed economy • ex) France, India, China Socialism • Major factors of production owned by government. • energy, healthcare, etc. • private owners too Socialism • Distribution of goods and services determined by both. • a blend Socialism • Government provides some basic needs. • healthcare, more extensive social programs, welfare, etc. • Emphasis on “being fair” to all. Levels of economic activities • Just remember the POTATO… Primary Activities • Getting the raw materials for immediate use or in the making of a final product. • fishing, farming, timber, mining Don’t be a potato farmer! Secondary Activities • Adding value to materials by changing their form. Or oil into? • Manufacturing • Mark an advancing economy. Turn those potatoes into?. Tertiary Activities • Providing business or professional services. • Usually seen in developed economies. Sell french fries for business. Quaternary Activities • Provide information, management, and research services by highly trained persons. • only in places with the highest level of economic development Study potatoes and alter them. No, it’s not real.