CHAPTER 13

Section 1: The Economic Institution

Section 2: The Political Institution

The Economy and Politics

SECTION 1

Question:What are the similarities and differences between capitalism and socialism?

The Economic Institution

SECTION 1

The Economic Institution

Capitalism Socialism

ECONOMIC MODELS

• factors of production owned by individuals

• forces of profit and competition regulate economic activity

• minimum government interference

• industrial and postindustrial societies

• “pure” forms are ideal types

• factors of

production owned by the government

• pure form is communism

• economic activity regulated by the government

SECTION 2

Question:What are the major characteristics of the U.S. political system?

The Political Institution

SECTION 2

The Political Institution

Major Characteristics of the U.S. Political System

consists of three branches of government—the

executive, legislative, and judicial

includes public participation although voter participation

varies and is relatively low overall

dominated by two major political

parties—Democrats and Republicans

has proportional representation, but debate exists over who holds power

includes interest groups and PACs, which help groups with minority views

influence government decisions

Chapter Wrap-Up

1. How do capitalism and socialism differ in terms of ownership of the factors of production and in terms of regulation of economic activity?

2. How has e-commerce changed the American economy?

3. How do democratic and authoritarian governments differ in the ways they use power?

4. What methods do interest groups and political action committees use to win political and public support for their issues?

1. How do capitalism and socialism differ in terms of ownership of the factors of production and in terms of regulation of economic activity?

2. How has e-commerce changed the American economy?

3. How do democratic and authoritarian governments differ in the ways they use power?

4. What methods do interest groups and political action committees use to win political and public support for their issues?

CHAPTER 13