| A | B |
|---|
| Direct Democracy | All citizens vote directly on issues |
| Representative Democracy | People vote for representatives who lead the country and make laws |
| Constitutional Monarchy | A monarch inherits the right to rule but is limited by laws and a law-making body elected by the people |
| Absolute Monarchy | A monarch inherits the right to rule and has unlimited power |
| Dictatorship | A dictator makes all laws and suppresses any opposition |
| Theocracy | A government where the leader(s) are religious officials |
| Traditional Economy | Customs and traditions determine what and how to produce. Resources are usually shared. Many traditional systems use bartering to exchange goods and services. |
| Command Economy | Government owns resources and controls production, prices, and wages. Shortages of consumer goods occur because government sets prices low and resources are often used for military goods. |
| Market Economy | Individuals own resources and determine what and how to produce. Prices and wages are determined by producer supply and consumer demand. |
| Mixed Economy | Individuals own most resources and determine what and how to produce. Government regulates certain industries. |
| Command Economy Example | In the former U.S.S.R., the government controlled all aspects of business. People were told where to work and what to produce. There were often shortages of goods because the government did not know enough about what the people needed. |
| Mixed Economy Example | In the U.S., individuals are allowed to open any type of business that they want. Prices and goods sold are decided by the individuals. However, the government states that a minimum wage must be paid to all employees and the meat companies must follow certain government guidelines. |
| Market Economy Example | In the country of Szymanskiland, Theresa owns her own video game store. She likes playing video games so much that she decided to make it her career. Theresa decides what games to sell and what price the games will be. Nobody can tell Theresa what to do. She has high profits each year from her store. |
| Traditional Economy Example | In Mbabwa village, Mr. Nobu creates sandals. He is a traditional sandal maker because his family has created sandals for his village over 5 generations. He often trades his sandals for grain, which is produced on Mr. Mbubu's farm. His family has farmed land for many generations as well. |
