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Economic Systems and Forms of Government

A review of the different types of economic systems and forms of government

AB
unitaryone central government makes laws for an entire nation
federal systempowers are shared between national and state governments
confederationstate governments are more powerful than the national government
sovereigntya nation's freedom from outside control
monarchykings, queens, shahs, etc. inherit their power
democracypeople choose leaders and set government policy
capitalismpeople decide all economic questions
socialismthe state runs basic industries, the rest is privately owned
communismstate owns all property and distributes wealth equally
dictatorshipautoritarian form of government, power is often gained using force
United Statescountry with a federal system
Francecountry with a unitary system
Saudi Arabiacountry with a monarchy
United Kingdomcountry with a constitutional monarchy
Iraqcountry with a dictatorship
free-market economysynonymous with capitalism
command economysynonymous with communism
mixed economysynonymous with socialism

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