Political and Economic Systems

Also called a capitalist economy. All economic decisions are made by businesses and consumers (NO GOVERNMENT INVOLVEMENT).

• Traditional

• Free

• Mixed

• Command

All economic decisions are made by continuing to do things the way they’ve always been done. (Ex: Inherit land from parents)

• Traditional

• Free

• Mixed

• Command

Also called a socialist economy. Economic decisions are shared between the government and people.

• Traditional

• Free

• Mixed

• Command

Also called a communist economy. All economic decisions are made by the government.

• Traditional

• Free

• Mixed

• Command

What is a disadvantage of a command economy?

• Higher taxes

• Little to no surplus

• Government controls what people buy and sell

• Private Property

What is an advantage of a free market economy?

• Higher taxes

• People can buy and sell what they want.

• Government controls what people buy and sell

• No private property

Mexico is an example of a(n) ________, because it is transitioning from a primarily agricultural economy to an economy primarily focused on manufacturing and industrial activities.

• more developed country

• less developed country

• newly industrialized country

• industrialized country

The political system in which a hereditary king or queen has the power

• Democracy

• Dictatorship

• Monarchy

• Theocracy

The political system in which leaders are chosen to rule with the consent of the citizens

• Democracy

• Dictatorship

• Monarchy

• Theocracy

The political system in which those who rule are regarded as divinely inspired.

• Democracy

• Dictatorship

• Monarchy

• Theocracy