| A | B |
|---|
| Traditional Economy | Economic system in which families or villages produce goods for their own use with little surplus or exchange of goods. |
| Command Economy/Communism | Economic system in which the government makes all economic decisions. |
| Market Economy/Capitalism | Economic system in which the means of production and distribution are privately owned and operated. |
| Mixed Economy/Socialism | Economic system in which a free market and the government jointly make economic decisions for the benefit of the entire nation. |
| Unitary System | Political system in which the central government makes laws for the entire nation. |
| Federal System | Politcal system in which power is shared between a central government and smaller political units. |
| Confederation | Political system in which small political units keep their sovereignty and give only limited powers to the federal government. |
| Absolute Monarchy | Authoritarian government in which leaders inherit their position by being born into a ruling family. |
| Constitutional Monarchy | A democratic government in which a king, queen, etc plays a ceremonial role, but the real power lies with an elected law-making body. |
| Presidential Democracy | A democratic government in which people directly vote for their leader, who is both head of state and government. |
| Totalitarianism | An extreme form of a dictatorship in which the leader controls all aspects of the citizens' lives. |
