Key Concepts in Government, Economics, and Political Theories

Anarchy

a state without government and laws

Government

an institution through which leaders exercise power to make and enforce laws affecting the people under its control

Nation

a group of people who are united by common bonds of race, language, custom, or religion

State

a political community that occupies a definite territory and has an organized government

Sovereignty

supreme authority; the authority of a state to govern itself or another state

Evolutionary theory

the theory government evolved from the family

Force theory

the theory government began when one or more person took control

Divine right theory

the belief the right to rule came from God

Social contract theory

the belief people agreeingly surrender some of their freedoms to the ruler of a state in return for order and security

Unitary system

the government gives all key powers to the central government

Confederacy

a loose union of independent and sovereign states

Federal system

a government that divides and shares power between a national and state or provincial level

Constitution

a plan that provides rules for government

Authoritarian

a government that controls all aspects of citizens' lives

Totalitarian state

an authoritarian government that controls citizens' economic, political, and social lives

Dictatorship

power is in the hands of one person that has total control

Autocracy

a government in which one person holds complete power

Oligarchy

a government in which power belongs to a small group of people

Monarchy

a government in which a king, queen, or emperor inherits the throne and serves as head of state

Feudalism

a system of government in which nobles offered protection and land to their subjects in return for their service

Democracy

a system of government in which rule is by the people, either directly or through representatives

Economics

the study of how people and nations use their resources to attempt to satisfy wants and needs

Capitalism

an economic system that emphasizes private ownership of the means of production, free choice, and individual incentives

Socialism

an economic system in which the government plays a large role in the economy, but does not completely control it

Command economy

one in which the government determines what to produce, how much to produce, and how to distribute goods and services

Mixed economies

combine elements of capitalism and socialism

Market economy

an economic system in which production and prices are determined by unrestricted competition between privately owned businesses