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Government and Economics Study Guide Answers 1. What is the purpose of government? to keep order, to provide services, and to protect the common good 2. Why do countries need constitutions? They need rules for the government to identify the powers of the government (tell how the gov. works) 3. How is power distributed in a unitary government? Power is held by the central government 4. What type of government (unitary, federal, or confederation) divides power between the central government and the local states somewhat equally? federal 5. In which type of government (unitary, federal, or confederation) is the power held by the one central authority? unitary 6. In which type of government (unitary, federal, or confederation) do countries work together to solve problems or provide for their people? confederation 7. In which two types of government (autocracy, oligarchy, or democracy) do citizens have no voting rights? Autocracy and oligarchy 8. In an autocratic government who has the power? The ruler of the country (monarch or dictator) 9. In a democratic government how do leaders come into power? Elected by the people (citizens) 10. In which form of government does a small group of people hold most of the power and citizens have limited participation? Oligarchy 11. In which form of government would the “will of the people” most likely be the rule of law? Democracy 12. What are two types of democracies? Presidential and Parliamentary 13. How is a prime minister chosen in a parliamentary democracy? By the legislature (Parliament) 14. Who chooses the president in a presidential democracy? The citizens of the country 15. On the continuum of government where do you find a confederation? On the end closest to a weak central government 16. What type of government (unitary, federal, or confederation) do we have in the U.S. today? federal 17. What is a Developed (Industrialized) Country? A country with a strong economy and a high standard of living 18. How do economists measure a country’s economy? By the country’s GDP 19. What are three factors that impact a countries population? Birthrate, death rate and migration 20. What is an entrepreneur? A person that owns a business 21. Which type of economy is also known as capitalism? Market 22. In a Traditional Economy: a. Who determines how goods and services will be produced? what has been passed down from generation to generation b. Who determines what goods and services will be produced? what has been passed down from generation to generation c. Who will consume the goods and services? the people who live in the areas 23. In a Command Economy: d. Who determines how goods and services will be produced? Government planning committees e. Who determines what goods and services will be produced? Government planning committees f. Who will consume the goods and services? Consumers (the people) 24. In a Market Economy: g. Who determines how goods and services will be produced? producers and consumers using the forces of supply and demand h. Who determines what goods and services will be produced? producers and consumers using the forces of supply and demand i. Who will consume the goods and services? consumers (the people) 25. What is a Mixed Economy? An economy that is part command economy and part market economy ***** Know ALL Government and Economic Vocabulary!!