No matter where in the world you may be, it is very important that you are able to understand the types of government and economic systems. You see your knowledge of the types of government and economic systems will give you a pretty good idea of how a country is run. This way, you will be able to live in a place where you will agree with the types of government and economic systems.
Democracy is the first of the types of government and economic systems that we will discuss. Here, the people get the supreme power. It is the people who get the power to choose the people who will govern them by electing them. In other words, through a representation system people are able to see what they want to see in their government.
Monarchy is the second of the types of government and economic systems we will discuss. A monarchy is a government lead by a royal, either a king or a queen, who is seen as the head of the state permanently. The power is then passed down hereditarily, from the parent to the child as the parent passes away. But most monarchies have prime ministers, elected by the people, to head the government.
Theocracy is the third of the types of government and economic systems we will discuss. Here, the government is led by the church. In other words, the clergy or the church officials are the ones that run the government. The rules and legal system of the country is also based on the religious law because they believe that this kind of government is divinely guided.
Dictatorship is the fourth of the types of government and economic systems to be talked about here. In this kind of government, there is one person that leads the government and all that he wants to happen will happen. He has absolute control and he took the leadership role forcibly.
These days, there are transitional types of government and economic systems too. Here, the way the government is run changes regularly. This being said, it is known to be quite unstable.
Capitalism is another one of the types of government and economic systems we will discuss. Here, the people are free to choose where they will invest their money. They are also the ones who own entirely the business that they have established hence they are the ones that manage them freely as well.
In the socialism types of government and economic systems, there are some businesses that get controlled and organized by the government. People can have individual properties too. Health and education benefits of the people are said to be good, but in return taxes are said to be very high to be able to afford them.
Communism is the last in this list. Here, people do not own individual property. The businesses in the country are all owned and controlled by the government too. Also, social class does not matter here as everyone is treated as equals.