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My World Interactive : CORE CONCEPTS – , CIVICS AND VOCABULARY

GOVERNMENT, CIVICS AND ECONOMICS CORE CONCEPTS: Foundations of Government

CONSTITUTION A system of basic rules and principles by which a government is organized. GOVERNMENT A group of people who have the power to make and enforce for a country or area; Purpose is to keep order, provide services and to protect the common good, or well-being of the people. LIMITED GOVERNMENT A government structure in which government actions are limited by ; work to protect the common good and provide for people’s needs. TYRANNY The unjust use of power. UNLIMITED GOVERNMENT A government structure in which there are no effective limits on government actions. (A ruler or a small ruling group has the power to make all decisions for a country or .

GOVERNMENT, CIVICS AND ECONOMICS CORE CONCEPTS: Political Systems

AUTHORITARIAN A government in which all power is held by a single person or small group. (EX: Nazi Germany, Cuba, North Korea) The powers of an authoritarian government are unlimited. A political and economic system in which government owns all property and makes all economic decisions. (EX: Cuba, North Korea) A form of government in which citizens hold political power; citizens are the ultimate source of government power and authority. The powers of a democratic government are usually limited. (EX: USA) : citizens come together to pass laws and select leaders. : citizens elect representatives to make government decisions. A state containing several countries. A form of government in which the state is ruled by a monarch. (usually a king or a queen) : One in which the leader has unlimited power. : One in which the leaders shares power with other branches of government. (EX: United Kingdom) CITY-STATE An independent state consisting of a city and its surrounding territory. NATION-STATE A state that is independent of other states. (EX: The United States) STATE A region that shares a common government.

GOVERNMENT, CIVICS AND ECONOMICS CORE CONCEPTS: Political Structures

FEDERAL SYSTEM Power is divided among central, regional, and local . UNITARY SYSTEM A central government makes all the laws for the entire country.

GOVERNMENT, CIVICS, AND ECONOMICS CORE CONCEPTS:

CITIZEN A legal member of a country. CIVIC LIFE Participating in activities having to do with one’s society and . (EX: , cleaning up pollution, etc.) CIVIC PARTICIPATION Taking part in government. (EX: running for public office, voicing opinions at town meetings, taking part in gatherings, protests, or demonstrations.) INTEREST GROUP A group that seeks to influence public on certain issues. A group that supports candidates for public offices.

GOVERNMENT, CIVICS AND ECONOMICS CORE CONCEPTS: Economic Basics

AGRICULTURAL INDUSTRIES Industries involved in growing plants and raising animals for food, fuel, clothing, and other products. Examples include small family farms that may grow a variety of crops and large-scale agribusinesses that may focus on just one plant or animal. BUSINESS PLAN A summary of the goals of a business and a step-by- step plan for reaching those goals. CONSUMERS People or businesses that buy, or consume, products. DEMAND The desire for a certain good or service. ECONOMICS The study of how people meet their wants and needs. People must answer these three questions: 1. What goods and services should be produced? 2. How should goods and services be produced? 3. Who uses or consumes those goods and services? ENTREPRENEUR A person who combines resources to create a new business. INCENTIVE A factor that encourages people to act in a certain way. (EX: money is an incentive.) MANUFACTURING INDUSTRIES Industries that produce the goods that are sold by retail stores. Manufacturing industries make everything from bicycles to cell phones to mattresses. OPPORTUNITY COST The cost of what you have to give up. (EX: the one you don’t buy…the one that lost is opportunity cost.) PRODUCERS People or businesses that make and sell products. RETAIL INDUSTRIES Industries that sell goods directly to consumers for a profit. Clothing stores, groceries stores, book stores, and sports stores are all examples of retail businesses. SCARCITY Having a limited quantity of resources to meet unlimited wants. SERVICE INDUSTRIES Industries that provide a service to customers. The service does not involve the manufacturing of goods. Examples of service industries include hotels, restaurants, airlines, accounting firms, and banks. SUPPLY The amount of a good or service that is available for use. (Demand and supply are connected to price. Price increases, demand decreases; Price decreases, demand increases.) WHOLESALE INDUSTRIES Industries that sell goods in large quantities or in bulk, often to businesses. The goods are then resold to consumers. Wholesale industries focus on all types of products, including furniture, cars, computers, and construction materials.

GOVERNMENT, CIVICS AND ECONOMICS CORE CONCEPTS: Economic Process

COMPETITION The struggle among producers for consumers’ money. INFLATION The general increase in prices. MARKET An organized way for producers and consumers to trade goods and services. PROFIT The money a company has left after subtracting the costs of doing business. RECESSION A decline in economic growth for six or more months in a row. REVENUE The money earned by selling goods and services. SPECIALIZATION The act of concentrating on a limited number of goods or activities.

GOVERNMENT, CIVICS AND ECONOMICS CORE CONCEPTS: Economic Systems

TRADITIONAL ECONOMY An economy in which people make economic decisions based on their customs and habits. (Not common today- EX: trading) MARKET ECONOMY An economy in which individual consumers and producers make economic decisions. (Capitalism/free market) MIXED ECONOMY An economy that combines elements of traditional, market, and command economic systems. COMMAND ECONOMY An economy in which the central government makes all economic decisions. (Centrally planned economy/like communism) SPECULATION The practice of making high-risk investments with borrowed money in hopes of getting a big return.

GOVERNMENT, ECONOMICS AND CIVICS CORE CONCEPTS: Trade

TRADE The exchange of goods and services in a market. COMPARATIVE ADVANTAGE A society’s ability to produce a product most efficiently given all the products it could produce. IMPORT Goods and services sold in a country that are produced in other countries. (BRING IN) EXPORT Goods and services produced within a country and sold outside the country’s borders. (SHIP OUT) TARIFF A tax on imports or exports. (An example of a trade barrier) TRADE BARRIER A government policy or restriction that limits international trade. FREE TRADE The removal of trade barriers.

GOVERNMENT, ECONOMICS AND CIVICS CORE CONCEPTS: Money Management

BUDGET A plan that shows income and expenses over a period of time. BOND A certificate issued by a company or government promising to pay back borrowed money with interest. CREDIT An arrangement in which a buyer can borrow to purchase something and pay for it over time, such as by using a credit card. INTEREST The price paid for borrowing money. INVESTING The act of using money in the hope of making a future profit. SAVING The act of setting aside money for future use. STOCK A share of ownership in a company.