| A | B |
|---|
| autocracy | one person has all the power |
| monarchy | king or queen inherit the throne and are limited by tradition or law |
| oligarchy | small group holds power |
| democracy | rule by the people |
| republic | voters elect representatives to run the government |
| political party | try to influence government policies and activities (Democrats, Republicans) |
| free enterprise | freedom to operate business with minimal gov. regulation |
| economics | study of how limited resources are used to satisfy people unlimited wants |
| captalism | economic system with freedom of choice and individual incentive for workers, investers, and consumers. |
| free market | no limits on the freedom of buyers and sellers to make economic decisions |
| laissez-faire | leave the economy alone - no government intervention |
| socialism | government owns the means of production (factories) and determines the use of resources, distributes wages, and provides education, health care, and welfare |
| proletariat | working class |
| bourgeoisie | middle class - owners |
| communism | workers would overthrow capitalists and create one class - the working class |
| command economy | government tell how much to produce; what to produce; and how to distribute the goods |
