Please Grab: 1. Your folder. 2. Writing Utensil. 3. Answer the following question: What type of government is the United States? Governments: Make and enforce laws Regulate business and trade Provide aid to people Help shape the culture and economy of a country as well as the daily lives of people who live there Many countries have democratic governments. A democracy is a form of government in which the people elect leaders and rule by majority. Some work to protect the freedoms and rights of their people. Others restrict the rights and freedoms of their people. • • • • One of the oldest types of government Ruled directly by a king or queen, the head of a royal family In some, power is in the hands of just one person. In others, many democratic practices are used. • A single, powerful ruler has total control. • Leader is called a dictator. • Often rules by force • People have few rights and no say in their own government. • • • A political system in which the government owns all property and dominates all aspects of life in a country Leaders are chosen by the Communist Party or by Communist leaders. People have restricted rights and very little freedom. The economy is a system that includes all of the activities that people and businesses do to earn a living. Countries use a mix of different economic activities and systems. Geographers divide economic activities into four levels. Primary industry Secondary industry Tertiary industry Quaternary industry • People earn a living by providing raw materials or natural resources to others. • Examples include farming, fishing, and mining • Use natural resources or raw materials to manufacture other products • Example: automobile manufacturers use steel and other materials to build cars and trucks. • Goods and services are exchanged • Includes people who sell the products made in secondary industries and people who provide services rather than goods, such as health care • Involves the research and distribution of information • People work with information rather than goods and often have specialized knowledge and skills. Traditional Economy Market Economy • System in which people grow their own food and make their own goods • System based on private ownership, free trade, and competition • Trade may take place through barter, or the exchange of goods without the use of money. • Individuals and businesses are free to buy and sell what they wish. • Often found in rural and remote communities • Prices determined by the supply and demand for goods • Sometimes called capitalism Command Economy • System in which the central government makes all economic decisions • Government decides what goods to produce, how much to produce, and what prices will be. • Communist governments own and control most businesses in their countries. • • • • • Measures of a country’s wealth used by geographers to decide if a country is developed or developing One measure used is gross domestic product (GDP)—the value of all goods and services produced within a country in a single year. Other indicators include a country’s per capita GDP, level of industrialization, and overall quality of life. Developed countries have strong economies and a high quality of life; usually have high per capita GDP Developing countries have less productive economies and a lower quality of life; usually have lower per capita GDP Please identify three different types of government we have discussed.