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Government and Economic Review How governments distribute power: • The main forms of distribution • 1.) Unitary- A system of government where the central government possess much of the authority and law making power. In this type of system, the local governments act as the “arms” for the central government (brain)meaning they carry out the orders or laws made by the central system- but have no real power of their own. • 2.) Confederation- System of government that has a weak central government, with most of the power being held by the local governments. (Opposite of unitary.) – During the Civil War- the south broke away from the north and formed a Confederate government. • 3.) Federal- System of government where the power is split between the central and local governments. It’s a combination of unitary and confederation types of government – The United States has this type of governmental system. How do governments determine citizens participation? • 1.) Autocratic- Government in which one person possess unlimited power – Dictator is usually the ruler (citizens do not participate in gov’t) • 2.) Oligarchy-Form of government in which the power is in the hands of a few persons or small group (who have the combined power of a dictator.) (citizens do not participate in gov’t). • 3.) Democratic- Form of government where the power lies in the hands of the people. What are the two forms of democratic governments? • 1.) Parliamentary- A system of government in which the executive power works with members of the legislature, who are part of the law making process. • The executive power is actually part of the law making process (Prime Minister) • 2.) Presidential- A system of government in which the Executive / president is separate from the legislature or law making process. • President is the Head of the country Economic System • 1. Traditional, Command, Market systems….with your partner define the 3 types of economic systems. Then give me an example of a country that has each. • 2. What three questions must each country ask themselves when figuring out what products to make? • 3. Why do most countries have a mixed economy? Economics Continued… • 4. What is specialization? • 5. What is an example of a political trade barrier? • 6. What is an example of a physical trade barrier? • 7. What Does GDP stand for & what is it? • 8. What is an Entrepreneur? • 9. What is a tariff? Econ ?’s… • • • • • • 10. What is an embargo? 11. What is human capital? 12. What is the purpose of an exchange rate? 13. What does OPEC do? 14. What is a quota? 15. Give an example of why a country might put an embargo on another country.