Economic & Political Institutions

Government where decisions are based on formal rules and regulations

Economic system where factors of production are owned by individuals

A situation in which a few large companies control an industry

Deals with extracting raw materials from the environment (i.e., mining, fishing, farming)

Most factors are owned by the government, who also regulate economy

Concentrates on the use of raw material to manufacture goods (Ex.: turning wood into furniture)

Use trade barriers to protect domestic manufacturing

Government where power is based on long-standing custom

Emphasis shifts to providing services (Ex.: Retail sales, auto repair)

Argued by Karl Marx to be the ultimate end goal of socialism