Government and Economic Systems

Citizens have the power to make decisions by voting. Leaders are chosen through elections. There are two main types: Direct Democracy: Citizens vote on all laws. Representative Democracy: Citizens elect leaders to make decisions. Example: United States.

• Democracy

• Autocracy

• Oligarchy

• Monarchy

A small group of people have all the power. They may be wealthy, military leaders, or belong to a specific political group. Citizens have limited or no influence on decisions. Example: Ancient Sparta.

• Democracy

• Oligarchy

• Monarchy

• Theocracy

Individuals and businesses make their own economic decisions. Supply and demand determine prices. There is little government interference. Example: United States (mostly a market economy).

• Market Economy

• Command Economy

• Mixed Economy

• Traditional Economy

A king, queen, emperor, or empress rules the country. Power is usually passed down through family. Some monarchies have limited power, with a parliament helping to make decisions. Example: United Kingdom (constitutional monarchy).

• Monarchy

• Democracy

• Oligarchy

• Theocracy

People produce goods and services based on customs and traditions. Often found in rural or farming communities. Trade is common instead of using money. Example: Indigenous tribes.

• Market Economy

• Planned Economy

• Traditional Economy

• Mixed Economy

The government makes all economic decisions. It controls what goods are produced, how they are made, and who receives them. Example: Cuba.

• Command Economy

• Market Economy

• Mixed Economy

• Traditional Economy

A combination of command and market economies. Businesses have freedom, but the government regulates some industries. Provides public services like healthcare and education. Example: France.

• Mixed Economy

• Capitalist Economy

• Socialist Economy

• Traditional Economy

One leader has complete control over the country. People have little or no say in government decisions. Example: North Korea.

• Democracy

• Monarchy

• Dictatorship

• Oligarchy