Unit 1: Political and Economic Systems Study Guide

Vocabulary study cards covering government systems, constitutional structures, federalism, economic principles, and foundational U.S. history.

Local Government

The level of government closest to the people, established by state authority (counties and municipalities) to provide direct public services, maintain public safety, regulate land use, and address community-specific needs (e.g., Maryland's 24 major local jurisdictions).

State Government

The level of government possessing reserved powers under the 10th Amendment, responsible for regulating health, safety, welfare, education, and intrastate commerce within its geographic boundaries.

National (Federal) Government

The supreme government of the nation established by the U.S. Constitution, holding enumerated and implied powers to manage national defense, foreign policy, interstate commerce, and national economic stability.

Limited Government

A system and core constitutional principle where government power is strictly restricted by a constitution, law, and citizen rights to prevent tyranny and preserve individual liberty.

Unlimited Government

A political system where leaders hold total authority without constitutional or legal boundaries, leading to a high risk of tyranny, oppression, and absent citizen rights.

Federal System (Federalism)

A division of political authority between a central (national) government and regional (state) governments, where each level has its own specific authority and shared (concurrent) powers.

Shared (Concurrent) Powers

Powers held and exercised by both the federal and state governments at the same time, including collecting taxes, building roads and infrastructure, passing and enforcing laws, and establishing courts.

National Powers (Expressed / Implied)

Powers granted specifically to the federal government by the U.S. Constitution, such as declaring war, printing and coining money, regulating interstate and international trade, and maintaining the military.

State Powers (Reserved)

Powers reserved exclusively for the states under the 10th Amendment, including issuing licenses (e.g., driver's, marriage, professional), conducting elections, managing public schools, and overseeing local health and safety.

Authoritarian

A political system characterized by concentrated central authority where leaders enforce strict obedience and limit personal, political, and civil freedoms.

Totalitarian

An extreme form of authoritarianism where the state exercises total control over both public and private life, including the economy, education, media, and personal beliefs.

Absolute Power

Complete, unrestricted political authority held by a governing force, operating without legal, judicial, or constitutional checks and balances.

Autocracy

A system of government where political power is concentrated in the hands of a single ruler, encompassing absolute monarchies and dictatorships.

Absolute Monarch

A monarch (king or queen) who holds complete, unchallengeable sovereign power over a state, unconstrained by written laws, hereditary limits, or elected bodies.

Dictatorship

A form of government where power is seized or held by a single ruler or small group using force, military power, or coercion, rather than popular consent.

Oligarchy

A government structure where power is monopolized by a small, elite group based on wealth, social class, military control, or political affiliation.

Democracy

A system of government where supreme political authority rests with the people, exercised through popular sovereignty and the rule of law.

Direct Democracy

A democratic system where citizens participate directly in making laws, voting on policies, and deciding public affairs without elected intermediaries.

Representative Democracy (Republic)

A democratic system where citizens elect representatives through free, fair, and competitive elections to make laws and govern on their behalf.

Constitution

The foundational legal framework establishing the structure, procedures, powers, and explicit limits of a government while protecting fundamental rights.

Articles of Confederation

The first plan of government for the United States (1781–1789) that established a weak central government and sovereign states; its structural weaknesses led directly to the U.S. Constitution.

Economic Resources (Factors of Production)

The scarce inputs used to produce goods and services, divided into four categories: Natural Resources (Land), Human Resources (Labor), Capital Goods (Capital), and Entrepreneurship.

Natural Resources (Land)

Raw materials supplied by nature that are utilized in the production of goods and services, such as water, timber, minerals, and land.

Human Resources (Labor)

The human time, effort, skills, and physical/mental labor required for the production of goods and services.

Capital Goods (Capital)

Man-made tools, equipment, machinery, and buildings used by human labor to convert natural resources into finished products more efficiently.

Economic Wants

Unmet desires for goods, services, or conditions that can be satisfied through economic consumption or production.

Scarcity

The fundamental economic condition arising from unlimited human wants confronting limited productive resources, forcing individuals and societies to make choices.

Goods

Tangible physical items produced for consumption, such as food, housing, and technology.

Services

Intangible actions or work performed by individuals or businesses to satisfy consumer needs, such as healthcare, education, and law enforcement.

Trade-off

The sacrifice of one benefit or alternative option when a choice is made between competing demands.

Opportunity Cost

The value of the single next-best alternative given up when making an economic choice.

Traditional Economy

An economic system where answers to what, how, and for whom to produce are guided by culture, historical habits, customs, and survival traditions (e.g., subsistence farming, hunting).

Command Economy

An economic system where a central authority or government controls productive resources, owns major industries, sets prices, and determines what, how, and for whom goods are produced.

Market Economy

An economic system guided purely by individual self-interest, consumer demand, and voluntary exchange with zero to minimal government interference (laissez-faire).

Mixed Economy

An economic system that combines the market forces of private enterprise with government regulations, worker protections, and public services to ensure general welfare and stability (e.g., the United States).

Popular Sovereignty

A foundational democratic principle asserting that legitimate government authority is created and sustained only by the consent of the governed (the people).

Rule of Law

The constitutional principle that every individual, including government officials and leaders, is subject to and must obey the law.

Separation of Powers / Checks and Balances

The division of government authority into three distinct branches (Legislative, Executive, Judicial) with mutual oversight to prevent any single branch from accumulating excessive power.

Majority Rule with Minority Rights

A core democratic principle stating that policy decisions are determined by majority votes, while the fundamental civil rights and liberties of minority groups are permanently protected against oppression.

Three Basic Economic Questions

The three fundamental allocation questions every economic system must answer: WHAT to produce, HOW to produce, and FOR WHOM to produce.

Six Functions of Government (Preamble)

The purposes of the U.S. government outlined in the Preamble: form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty.

Shays' Rebellion (1786)

An armed revolt by indebted Massachusetts farmers that exposed the inability of the national government under the Articles of Confederation to maintain a standing army or quell internal unrest, accelerating calls for a new Constitution.

Unicameral Legislature (Articles of Confederation)

The single-house national legislature established by the Articles of Confederation where each state had one vote, passing laws required 9 of 13 state approvals, and constitutional amendments required unanimous (13 of 13) consent.