Government and Economic Terms

Government and Economic Terms

Government: CRCT p. 53-63, 134-138, 187-190

·  Unitary: one central government has all the power to make government decisions (laws, bills, etc…)

·  Confederation: a voluntary association of independent governments that join together for a common purpose (economic, military, etc)

·  Federal: the power to make government decisions is shared between the central and regional governments

·  Autocracy: one person participates in the government

·  Oligarchy: only a group of people participate in the government

·  Democracy: the citizens get to participate in the government through voting

·  Dictatorship: an autocratic government in which a person takes over control with force

·  Absolute monarchy: an autocratic government in which a monarch (king/queen/emperor/czar…etc) is the only participant in government decisions

·  Constitutional monarchy: a government in which there is a monarch; however, that person has little power and he/she has to follow the laws of the country (the constitution of the country)- more of a figurehead or symbol

·  Direct democracy: a type of democracy in which the citizens vote on every single issue

·  Representative democracy: a type of democracy in which the people elect representatives to vote on all the government decisions (two types: parliamentary and presidential)

·  Parliamentary democracy: a type of representative democracy in which the citizens elect their legislature and, in turn, the legislative body (normally called Parliament) elects the executive leader (normally Prime Minister)

·  Presidential democracy: a type of representative democracy in which the citizens elect their legislative branch as well as their executive leader (normally called President)

Economics: CRCT p. 66-84, 36, 145-147, 150-155

·  Entrepreneur: a person that takes risks to start a business- they bring together natural resources/human resources/capital resources, which can help a country’s GDP

·  Embargo: a complete ban on trade between countries (likely for political reasons)

·  Traditional economy: an economic system that is based on customs & traditions of ancestors- use bartering.

·  Literacy rate: % of people that can read and write in a country

·  Specialization: Division of labor; countries can becomes experts in producing certain goods

·  Command economy: an economic system in which the government makes all the production decisions (What? How? For Whom?)

·  Capital goods: factories, technology, machines, buildings- what businesses need in order to function

·  NAFTA: A trade agreement between Canada, Mexico, and the USA that got rid of tariffs

·  Human resources: education, training, skills, healthcare of workers and the value they bring to the workplace

·  Mixed economy: most democratic countries have this economy

·  Free enterprise: competition between businesses (market/mixed economies)

·  Standard of living: the economic level reached by a person, family, or country (their quality of life)

·  Quota: a limit placed on imported good

·  Tariff: tax on imported goods

·  GDP: total amount of goods and services produced in a country in a year

·  Market economy: An economic system in which individuals and corporations make all the production decisions (What? How? For Whom?)- citizens have the most freedom in running their businesses