Type of government and economic systems

Economic Systems

Market Economy
Market economy is the economic system, where both national and state governments only play a minor role. The economies are driven by the consumers and their buy and sell decisions. The market is the one that has the mayor role, and which decides the path of the country’s development. Market economy reduces or eliminates particular industries, predeterminedprices and regulations.
The fact that there is no central planning is the most important aspect of a market economy. Supply and demand dominate the market; the government’s role in this economic system is only regulating and stabilizing the economic activities. This economic system is mostly applied on capitalist countries.
Planned Economy
Also known as command economy, this economic system’smost important aspect is that all major decisions are made by the government. These decisions include the production, distribution, service prices, and other economic activities. This economic type is directed by the government, and the market has little power over the economy. It lacks of flexibility and decision making, and, in reaction to this, the changes in consumer needs and fluctuatingpatterns of supply and demand are slower. A planned economy tries to use all available recourses in product development, instead of using them for advertising and marketing. Most communist countries practice this type of economy.
Mixed Economy
This economic system uses both elements from the market and planned economy into one. A mixed economy takes some characteristics from the market as from theplanned and creates this form of economy. This economy is seen in most countries were neither the government nor the industries control any economic activities; they both take part in the decision-making process of the economy in the same way. This economy gives some flexibility in some areas while in another there is government control. Mixed economies have both capitalism and socialism policies,and are most seen in countries that search for a balance and wider economic and political views.
Types of Government

Monarchy
Government system in which the head of state is a one person. Commonly this person gets this power by heredity. It may also come out of a tribe leader. It may also come after a violent act; someone establishes rules to control the situation. It can be considered as theoldest system of government. In an absolute monarchy the monarch has absolute and complete power over the government and its people. In an absolute monarchy the monarch has complete and absolute power. Some of the countries who still have an absolute monarchy are Bahrain, Brunei, Oman, Qatar, Saudi Arabia, Swaziland, and Vatican City.
The constitutional monarchy is based on the structure of anabsolute monarchy but power is divided.
Constitutional Monarchy and Parliamentary System

A constitutional monarchy is a form of government in which the monarchs act as head of state under the laws of the constitution. Most constitutional monarchies have a parliamentary system. It is a system of government in which the power to make and execute laws is held by a parliament.

It has itsorigins with the Monarchy. With the pass of time, the decision of who got to become the next monarch became more complicated. Commonly, the oldest son (in case of the absence of one, the oldest daughter) became the next monarch.
Today most monarchs perform the ceremonial jobs of a head of state, while the head of government passes and enforces laws. These ceremonial jobs include representing thecountry when traveling or acting as a symbol for the whole country. In a constitutional monarchy the monarch has to obey the laws like any other civilian. In some cases the monarch does not have to obey the same laws as everyone else, special laws apply for them. These laws indicate what the monarch can and cannot do. Monarchs usually cannot decide their special laws on their own. Constitutional...