Unit I: Political & Economic Systems

Planned Market

A market when the government controls the economy

Pure Market

A market where the consumers and producers control the economy

Mixed Market

A market where the economy has characteristics of both a planned and pure market

Direct Democracy

A political system where the general public directly makes the decisions

Representative Democracy

A political system where representatives are voted by the people to make the decisions

Autocracy

A political system governed by a single individual

Dictatorship

A political system governed by a single person who holds absolute power and dictatorship over everything

Monarchy

A political system governed by a monarch, a position that is inherited

Oligarchy

A political system governed by a small group of people

Anarchy

A state of lawlessness and disorder, no one is in charge

Theocracy

A government that recognizes a god or divine power as the ultimate authority

Junta

A small group of people, usually military officers, whole rule and take over a country by force

Radical

- Willing to take violent action
- go to extreme measures
- favor RAPID forward change

Liberal

- peaceful
- social reforms
- government's responsibility to help its people

Moderate

- agrees with aspects of both liberal and conservative beliefs
- middle of the political spectrum

Conservative

- peaceful
- status quo
- government should stay out of people's lives

Reactionary

- willing to take violent actions
- go to extreme measures
- favor rapid change backwards

consumers and producers

Pure Market: Who decides what what goods and services should be produced/provided?

government

Planned Market: Who decides what what goods and services should be produced/provided?

pure market

- supply and demand
- wealth gap
- oppurtunity

pure market

- ideal: NO government intervention

pure market

- Adam Smith "Wealth of Nations"
- invisible hand

planned market

- government decides goods and services
- quota

consumers

Pure Market: For whom are the goods and services provided?

whoever the government decides requires it

Planned Market: For whom are the goods and services provided?

Pure Market

- competition
- lower prices
- raises productions, innovations, creativity, and quality
- bad products fail
- efficiency

Planned Market

- help if you need it
- equality
- people provided for based on needs
- less unemployment
- stability
- safety

Pure Market

- monopolies
- no regulations
- lack of safety
- no safety nets
- wealth gaps larger

Planned Market

- could have poor planning or decisions made by gov't/leaders
- lack of choice and freedom
- lack of competition, motivation, innovation, efficiency