Chapter 2 Study Guide (ANSWER KEY) 1. What is the oldest form of government still in use today? MONARCHY 2. Where in the United States do we still see direct democracy in use today? NEW ENGLAND TOWN MEETINGS 3. What ideas are Nazism built from? RACIAL SUPERIORITY 4. Which system of government centralizes power? UNITARY SYSTEM 5. What are some differences between monarchy and dictatorship? HOW THEY ACQUIRE POWER AND RETAIN POWER 6. What are some common features of market economies? PRODUCTION OF HIGH QUALITY GOODS AND SERVICES 7. Socialism attempts to fix which feature of capitalism? UNEVEN DISTRIBUTION OF WEALTH 8. In a command economic system who decides what to produce? GOVERNMENT/GOVERNMENT PLANNERS 9. In a presidential democracy, who chooses the president? THE CITIZENS 10. In a parliamentary democracy who chooses the president? THE PARTY WITH A LEGISLATIVE MAJORITY 11. What are the four factors of production? 1.LAND 2.LABOR 3.ENTRAPANEURSHIP 4.CAPITAL 12. What is a referendum process? A FORM OF DIRECT DEMOCRACY IN WHICH CITIZENS VOTE OR REJECT LAWS PASSED BY A LEGISLATURE 13. What is a recall election? AN ELECTORAL PROCESS THROUGH WHICH CITIZENS CAN VOTE AN ELECTED OFFICIAL OUT OF OFFICE 14. What is initiative process? A FORM OF DIRECT DEMOCRACY IN WHICH CITIZENS PROPOSE LAWS AND SUBMIT THEM DIRECTLY TO THE VOTERS FOR APPROVAL 15. What system of government would a country with a large diverse population have? FEDERAL SYSTEM 16. What system of government would a country with a small, non-diverse population have? UNITARY SYSTEM 17. What is the most common economy in the world today? MIXED ECONOMY 18. In the factors of production, the word “capital” refers to what? -THE MONEY NEEDED TO START A BUSINESS - THE MACHINERY, BUILDINGS, TOOLS, AND EQUIPMENT USED TO PRODUCE GOODS AND SERVICES - THE KNOWLEDGE AND SKILLS THAT WORKERs BRING TO THEIR JOBS 19. Where was the first constitutional democracy formed? AMERICA (PHILIDELPHIA @ CONSTITUTIONAL CONVENTION) 20. By definition a federal government divides power between… THE NATIONAL GOVERNMENT AND REGIONAL GOVERNMENT 21. What is a disadvantage of traditional economies? THE STANDARD OF LIVING OF MOST PEOPLE IS VERY LOW, AND MOST PEOPLE MEET THEIR BASIC NEEDS 22. What is the difference between a totalitarian regime and an authoritarian regime? A totalitarian regime tries to control citizens' lives more fully than an authoritarian regime. 23. What advantage does a presidential democracy have over a parliamentary democracy? The presidential system separates the executive and legislative powers to prevent abuses of power. 24. What government is an example of a confederal system of government today? the European Union today ` 25. What drives the production and distribution of goods and services in a free enterprise system? the profit motive, economic competition, and supply and demand 26. What is the main disadvantage of direct democracy? Frequent elections and meetings make it a very time-consuming process for citizens. 27. No nation-states are organized as a confederation today because in such a system, the central government is too weak to be effective. 28. Market economies are to individuals as command economies are to government planners. 29. How are dictatorships and absolute monarchies similar? One leader holds the power, which may lead to greater efficiency or the risk of abuse. 30. A representative democracy is a form of government in which Public decisions are made by leaders elected by the citizens to vote according to their interests 31. Referendum, initiative, and recall are examples of Direct democracy 32. What is the most common form of government today? Democracy 33. Which kind of government did the American colonists create when they formed the United States of America? Constitutional democracy 34. In what way are the economies of the United States and China similar? Both are mixed economies 35. In what form of government do citizens hold ultimate power? Democracy 36. The form of government that is headed by religious leaders. theocracy