Government 1
A system where supreme power rests with the people, exercised either directly or through elected representatives.
Democracy
A system where supreme power is held by a single person (a king or queen) who reigns over a state, usually for life.
Monarchy
the social science that studies how individuals, businesses, and governments make decisions to allocate limited resources—like time, money, and natural resources—to satisfy unlimited wants and needs.
Economics
The act of buying, selling, or exchanging goods and services between parties, often using money as a medium of exchange.
Trade
A system of exchange where goods or services are directly traded for other goods or services without the use of money.
Barter
A system where supreme power rests with the people, exercised through elected representatives, including the president.
Presidential Democracy
A system where supreme power is held by a single person (a king or queen) who reigns over a state, usually for life. This monarch holds total control over the state.
Absolute Monarchy
A system based on customs, history, and beliefs to guide production, distribution, and consumption.
Traditional Economy
The total value of goods and services produced within a country in a year.
GDP (Gross Domestic Product)
The fundamental problem that human wants exceed available resources.
Scarcity
A system where supreme power rests with the people, exercised through elected representatives. The representatives (or parliament) then select the prime minister.
Parliamentary Democracy
A system where supreme power is held by a single person (a king or queen) who reigns over a state, usually for life. The king or queen has power that is limited, or shared, with an elected government through a constitution.
Constitutional Monarchy
A hybrid system combining market freedom with government oversight. It allows private ownership but provides regulations to stabilize the economy and protect consumers/workers.
Mixed Economy
The total quantity of a good or service that producers are willing and able to sell at various prices during a specific period.
Supply
The quantity of a good or service that consumers are willing and able to purchase at various prices.
Demand
A condition of lawlessness or political disorder brought about by the absence of governmental authority.
Anarchy
A government run by religious leaders, where laws are based on religious texts.
Theocracy
A centralized authority or government controls all aspects of the economy, including production, resource allocation, and pricing.
Command Economy
Compulsory financial charges imposed by a government on income, goods, or services to fund public spending.
Taxes
An economic policy where governments do not restrict imports or exports with taxes (tariffs), quotas, or other barriers.
Free Trade
A form of government where one person or a small group possesses absolute power without effective constitutional limitations. Often get power through force or violence.
Dictatorship
A written document that defines the limits, powers, and functions of a government.
Constitution
Decisions regarding production, investment, and consumption are made by private individuals and businesses based on supply and demand with little to no government intervention.
Market Economy
A tax or duty imposed by a government on imported goods, designed to make them more expensive and protect domestic industries.
Tariff
Government policies or regulations that restrict international trade, making it more difficult or expensive for goods to cross borders.
Trade Barrier