Today, the world is made up of neartly 200 independent countries taht vary in size, military might, natural resources, and world influence. Eacch country is defined by characteristics such as its territory, its population, and its sovereignty, or freedom from outside control. All of this is controlled by one government. A government must make and enforce policies and laws that are binding on all people living within its territory.
A unitary system of government gives all key powers to the national or central government. This structure does not mean that only one level of government exists. Rather, it means that the central government creates state, provincial, or other loval governments and gives them limited sovereignty.
A federal system of government divides the powers of government between the national government and state or provincial governments. The U.S. developed a federal sustem after the thirteen colonies became independent.
Another type of government is a confederation. A confederation is a loose union of independent territories. The U.S. at first formed a confederation but this type of political arrangement failed to provide and effective national government.
An oligarchy is any system of government in wich a small group hlds power. The group derives its power from wealth, military power, and social position, or a combination of these elements.
A democracy is any system of government in wich leaders rule with the consent of the citizens. The term democracy comes from the greek demos meaning "the people" and kratia meaning "rule".
In a traditional economy, habit and custom determine the rules for all economic activity. In a market economy, individuals and private groups make decisions about what to produce. A mixed economy is one in wich the government supports and regulatesfree enterprise through decisions that affect the marketplace. In a comand economy, the government owns or directs the means of production-land, labor, capital (machinery, factories) and business managers- and controls the distribution of goods.
