Study Guide for Unit 3.1 Test

What type of government is led by people who were elected to run the government and reflect the ideas of citizens in their decision-making?

• Democratic Republic

• Theocracy

• Monarchy

• Dictatorship

Answer explanation

The type of government described is a representative democracy, where elected officials make decisions that reflect the citizens' ideas and preferences.

Having the most economic freedom & the highest standard of living, along with allowing citizens to own private property & make profits from their businesses are all characteristics of which economic system?

• Capitalism (or Free-Market)

• Communism

• Socialism

• Unitary

Answer explanation

A free-market economic system promotes efficiency, innovation, and consumer choice. It allows prices to be determined by supply and demand, leading to optimal resource allocation and fostering competition, which drives economic growth.

This type of government is led by religious leaders and/or uses religious laws.

• Theocracy

• Monarchy

• Democracy

• Dictatorship

Answer explanation

A government led by religious leaders and using religious laws is called a theocracy. In this system, political authority is often derived from religious authority, and laws are based on religious texts.

What type of economic system involves the government owning several basic industries and providing many services to citizens at no cost?

• Socialism

• Capitalism

• Communism

• Confederal

Answer explanation

The economic system described is socialism, where the government owns key industries and provides services to citizens at no cost, aiming for equal distribution of resources and welfare.

Which economic system allows private businesses to earn a profit and create just about anything that they can think of, as long as it’s legal? Select the BEST answer.

• Capitalism

• Free-Market

• BOTH Capitalism & Free-Market

• Socialism

Answer explanation

The economic system that allows private businesses to earn a profit and create almost anything legal is capitalism. In capitalism, individuals have the freedom to innovate and compete in the market.

What form of government would have ONE leader who has complete control over the country and they themselves are not bound by rule of law?

• Democracy

• Monarchy

• Dictatorship

• Oligarchy

Answer explanation

A dictatorship is a form of government where one leader has absolute power and is not restricted by laws. Unlike democracies, monarchies, or oligarchies, dictatorships centralize authority in a single individual.

The following are characteristics of what type of economic system? - Government owns some industries such as healthcare & education - Most services are provided to citizens free of charge - High rate of taxes to pay for the services provided

• Capitalism

• Socialism

• Communism

• Mixed Economy

Answer explanation

The characteristics describe socialism, where the government owns key industries like healthcare and education, provides services free to citizens, and funds these through high taxes.

In the US, our Constitutional Republic requires that all government officials and citizens must abide by the same laws. True or False?

• True

• False

Which economic system provides the most freedom and often creates high standards of living for the citizens in that country?

• Communism

• Capitalism or Free-Market Economy

• Socialism

• Federalism

Answer explanation

A Market Economy allows individuals to make their own economic choices, leading to innovation and competition. This often results in higher standards of living and greater personal freedom compared to Command, Mixed, or Traditional Economies.

Separation of Powers is one of the PRINCIPLES of our Constitutional Republic. What does this PRINCIPLE mean?

• Division of responsibilities among different branches of government

• Concentration of power in one branch

• Power held by the national government only

• Power held by individual states only

Answer explanation

Separation of Powers refers to the division of responsibilities among different branches of government, ensuring that no single branch holds too much power. This promotes a system of checks and balances.