Key Terms in Government and Economy

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Democracy

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A government in which citizens hold the power to rule.

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Direct Democracy

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A form of democracy in which the people vote firsthand.

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Representative Democracy

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A government in which citizens choose a smaller group to govern on their behalf.

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Republic

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A representative democracy where citizens choose their lawmakers.

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Limited Government

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The principle that a ruler or a government is not all-powerful.

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Legislature

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A group of people that make laws.

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Indentured Servant

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A worker who contracted with American colonists for food and shelter in return for his or her labor.

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Dissenter

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One who opposes official or commonly held views.

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Economy

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A system for making choices about ways to use scarce resources to make and distribute goods and services to fulfill people's needs and wants.

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Cash Crop

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A crop produced mainly for sale.