| A | B |
| government | the institution through which society makes and enforces public policy |
| public policy | those things that the government decides to do |
| legislative | power to make the laws |
| executive | power to enforce the laws |
| judicial | power to interpret the laws |
| constitution | the written plan of government |
| dictatorship | government by individual or group which rises to power |
| democracy | government where all citizens participate equally |
| state | an independent political unit in the world |
| sovereign | the right of a nation to govern itself |
| autocracy | a government controlled by an individual |
| oligarchy | government by a small group |
| unitary system | government where all power resides in the central government |
| federal system | government where power is divided between central government and political subdivisions |
| confederation | government where states come together for common cause, but retain sovereignty |
| presidential system | government where executive and legislative are separate |
| parliamentary system | government where legislative and executive are joined |
| compromise | modifying principle to come to an agreement |
| free enterprise | private ownership of economic factors |
| supply and demand | economic law that dictates production and prices of goods |