Types of Economies and Governments

What to Include

• Economies – Please include a definition that makes sense

to you! Use resources from around the room or your phone!

– Must also draw a picture representing the term and the definition

Today’s Mission

• Create 2 posters – 1 poster will include the three different types

of economies (Market/Capitalism, Mixed/Socialism and Command/Communism)

– 1 poster will include… • Constitutional and Absolute Monarchy• Presidential and Parliamentary Democracy• Dictatorship• Theocracy

What to Include

• Governments– Definition of each type of government– An example of each type (past or present)

Market/Command

• Business owners make decisions on what to produce and how much it will cost

• Private ownership

Mixed/Socialism

• Welfare state – care for all

• Both private ownership and gov’t control of major industries (utilities, transportation)

Command/Communism

• Government ownership of property

Traditional Economy

• A traditional economy is an economy based on custom and tradition/command.

• The decisions are based on tradition of the community or family.

Practice Question

1.) When the government controls allmajor industries and decides whatproducts will be produced and how many of each type of product will be produced, what type of economy is described?

A. mixedB. marketC. traditionalD. command

Practice Question2.) The economist Adam Smith was an Enlightenment thinker. In his writings, he described how market systems worked and expressed his belief in laissez-faire economics. His ideas influenced how people viewed their relationship with their government. Supporters of Smith wanted government to

A. end universal suffrage.B. uphold the divine right of kings.C. protect their freedoms and property.D. provide strict economic regulations on business.

Practice Questions

3.) In a certain country, decisions regarding production and consumption of goods are based upon customs, beliefs, rituals, and habits. Over time, the economic system changes to one in which production decisions are based on competition and consumer choice.

How has the economic system of this country changed?

A. from a mixed economy to a command economyB. from a command economy to a mixed economyC. from a traditional economy to a market economyD. from a market economy to a traditional economy

Practice Question4.). In a certain country, all decisions concerning the production of goods and services are made by the government. However, following a political revolution, a new economic system is set up in which some decisions regarding production of goods and services are made by the government and others are made by individuals and private companies.

How has the economy of this country changed?

A. from a mixed economy to a market economyB. from a command economy to a mixed economyC. from a market economy to a traditional economyD. from a traditional economy to a command economy

Practice Question

5.) In a command economy, the question of what goods to produce is primarily determined by

A. cultural traditions.B. decisions by individuals.C. government plans.D. corporate policies.

Practice Question

6.) Economic systems answer the question of how goods and services are produced. What is one way acountry could change from a command economy to a market economy?

A. if the government takes control of family-owned farmsB. if privately owned banks become subject to stricterregulationC. if agricultural and factory workers are required to joinlabor unionsD. if industries that had been owned by the governmentbecome privately owned

Practice Question

7.) In order to stimulate the economy, the United States government lowers personal income tax rates. Why would this action be expected to promote economic growth?

A. Businesses would be required to hire more employees.B. Manufacturers would have to pay more for raw materials.C. The government would be less likely to engage in deficit spending.D. Consumers would have more money available to spend on goods and services.

Presidential Democracy

• System of gov’t where people can vote for both the legislative (law-making) and executive branch (President).

• Example: United States

Parliamentary Democracy

• a political system in which the legislature (parliament) selects the government - a prime minister, premier, or chancellor - according to party strength as expressed in elections

• People vote for the legislature (parliament) 

• Example: Great Britain

Absolute Monarchy

• a form of government where the monarch rules unhindered, i.e., without any laws, constitution, or legally organized opposition.

• Example: Louis XIV of France

Constitutional Monarchy

• a system of government in which a monarch is guided by a constitution whereby his/her rights, duties, and responsibilities are spelled out in written law or by custom.

• Belgium (also has a parliamentary democracy)

Theocracy

• a form of government in which a Deity (god) is recognized as the supreme civil ruler, but the Deity's laws are interpreted by ecclesiastical authorities (bishops, mullahs, etc.)

• a government subject to religious authority. 

• Iran

Dictatorship

• a form of government in which a ruler or small clique wield absolute power (not restricted by a constitution or laws). 

• Example past: Hitler, Mussolini

• Example today: Kim Jong-il (North Korea)

Practice Question

1.) A group of citizens organizes a peaceful march through the streets of their nation’s capital. They carry signs calling for the nation’s leader to resign.

Describe how likely this type of protest could be held in a presidential democracy and in a dictatorship. Explain the reason for these differences. (2 points)

•orange - parliamentary republics•green - presidential republics, executive presidency linked to a parliament•yellow - presidential republics, semi-presidential system•blue - presidential republics full presidential system•red - parliamentary constitutional monarchies in which the monarch does not personally exercise power•magenta - constitutional monarchies in which the monarch personally exercises power, often (but not always) alongside a weak parliament•purple - absolute monarchies•brown - republics where the dominant role of a single party is codified in the constitution•dark green - countries that constitutional provisions for government have been suspended•gray - countries that does not fit in any of the above listed systems

Country Information

• https://www.cia.gov/library/publications/the-world-factbook/index.html