Reference Sheet: Types of Governments and Economies

Types of Government 

Democracy 

• Power: People or representatives vote to make decisions. 
• Strength: Citizens have a say. 
• Weakness: Decisions can take a long time, tyranny of the majority. 

Autocracy  

• Power: One person (king/queen or dictator) rules, often for life. 
• Strength: Clear line of leadership. 
• Weakness: Citizens may have little to no say, arbitrary rule of one person. 

Theocracy 

• Power: Religious leaders govern, laws based on religion. 
• Strength: Consistent with shared beliefs. 
• Weakness: Limited freedom for those with different beliefs. 

Oligarchy 

• Power: Small group of people (wealthy, military, elite) rule. 
• Strength: Group decisions, not just one person 
• Weakness: Ordinary people often excluded, leaders often make decisions for their own good. 

 

Types of Economies 

Capitalism 

• Who controls resources? Businesses and individuals. 
• Key idea: Free market, competition, private ownership. 
• Strength: Encourages innovation and growth. 
• Weakness: Can create inequality and poverty. 

Socialism 

• Who controls resources? The government provides many services, but individuals still own some businesses. 
• Key idea: Redistribution of wealth, government safety nets. 
• Strength: Reduces inequality, ensures basic needs are met. 
• Weakness: Higher taxes and government control can reduce incentives. 

Communism 

• Who controls resources? The government owns everything; no private property. 
• Key idea: Everyone shares equally in work and wealth. 
• Strength: No class divisions. 
• Weakness: Often limits freedom and efficiency; historically leads to shortages. 

Fascism 

• Who controls resources? Government and powerful leaders control the economy, but businesses may exist if they serve the state. 
• Key idea: Extreme nationalism, obedience, government direction of the economy. 
• Strength: Strong central control, rapid mobilization. 
• Weakness: Crushes individual freedoms, often violent and oppressive.