Civics & Economics
MUST KNOW: EOC Review
Please mark each item on your review packets.
You may also access this power point on my
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1. Regional Divisions
1. New England: MA, NH, RI, and CT
– Cold climate & rocky soil.
– Relied on shipbuilding and fishing.
2. Middle Colonies: NY, NJ, PA, and DE
– Farming, Trade, and Business.
– Practiced religious tolerance, church and state were
3. Southern Colonies: MD, VA, NC, SC, and GA
– Warm climate and long growing season.
– Used the plantation system-slaves.
2. Magana Carta & Common Law
• Magana Carta: limited the power of the king-
trial by jury.
• Common Law: system of law based on
precedent: a ruling in an earlier case that was
3. House of Burgesses
• 1st Representative Democracy in America.
4. Mayflower Compact
• Created by the Pilgrims at Plymouth.
Established a Direct Democracy where each
5. Maryland Toleration Act
• Allowed religious freedom.
• Separation of Church and State.
• State could not establish an official religion.
6. The Iroquois Confederation/
Albany Plan of Union
• Created by Native American tribes as an
agreement to ban together and stop fighting
each other. The union strengthened the
Albany Plan of Union:
• Benjamin Franklin is inspired by the Iroquois
Confederation and wanted to unite the British
• Main Cause of Revolutionary War.
– Britain began to tax colonies to pay off war debts from
the French and Indian War.
– Colonists are angry because they did not have
representatives in government (Parliament).
• “No Taxation Without Representation!”
– Slogan was developed to protest Stamp Act.
• Colonial Resistance to Taxes:
– Boycott British Goods
– Boston Tea Party (Sons of Liberty)
• Britain passed the Coercive/Intolerable Acts to punish
8. Lexington & Concord
• First battles of the Revolutionary War.
• “Shot heard round the world.”
9. “Common Sense”
• Written by Thomas Paine.
• Pamphlet encouraging colonists to declare
independence from Britain.
10. Declaration of Independence
(July 4, 1776)
• Second Continental Congress appointed Thomas
Jefferson to be the main writer.
• Jefferson was influenced by philosopher John Locke.
– Locke’s Ideas:
1. Natural Rights
– Rights that government cannot take away.
» His rights included life, liberty, and property (Jefferson switched to
pursuit of happiness).
2. Social Contract Theory
– A contract between the people and government. If the government
abuses the rights of the people, then the people can overthrow the
» Idea was used to justify declaring independence.
» Governments are formed to protect the rights of its people.
11. Articles of Confederation
• The first Weaknesses:
constitution of the 1. Lack of Power and Money:
US. – Congress could not collect taxes, regulate
trade, or enforces its laws.
Structure: 2. Lack of Central Power:
1. One-house – No Executive (president) or judicial (courts)
2. Each state had 3. Rules Too Rigid:
one vote. – Congress could not pass laws without the
approval of 9 states.
– Articles could not be changed without the
agreement of all 13 states.
• Shay’s Rebellion proved that the
country needed a stronger government.
12. Constitutional Convention
• Original goal was to revise the Articles of Confederation. Later, realized
it would be easier to create a new constitution from scratch.
• There were arguments about representation in Congress.
– Virginia Plan: Presented by Madison
• Representation based on population-supported by large states.
– New Jersey Plan: Presented by Patterson
• Equal Representation-supported by small states.
– Neither plan would pass so Sherman created the Great Compromise or
• Created current Congress: bicameral (2 houses)
– Senate: equal representation- 2 per state (100 total)
– House: representation based on population (435 total)
• Other compromises made:
– Three-Fifths Compromise: every 5 slaves would count as 3 free people for
taxation and representation purposes. (3/5ths)
– Commerce and Slave Trade: allowed slave trade from Africa for another 20
– Electoral College Compromise: created the Electoral College System to
elect president and V.P.
• Constitution was approved in 1787 after 9 of the 13 states ratified it.
13. Federalists v. Anti-Federalists
• Federalists: supported • Anti-Federalists:
the ratification (approval) opposed the Constitution,
of the Constitution. felt it gave too much
– Created the Federalist power to the national
Papers- to gain approval government.
for the Constitution. – Wanted a Bill of Rights
• Wanted a loose added to protect citizens
interpretation of the individual rights/civil
– Necessary and Proper • Wanted a strict
Clause/Elastic Clause- interpretation of the
implied powers. Constitution.
• Wanted to use to create a
14. Structure of Constitution
1. Preamble: introduction
2. The Articles: 7 Total
– Article I: describes legislative branch
– Article II: describes executive branch
– Article III: describes the judicial branch
– Article IV: relationship between the state and national
• Full Faith and Credit Clause:
– Laws and rulings of one state must be honored in others.
– EX: Marriage , Divorce, Court Rulings etc.
– Article V: Amendment Process
• Proposal: 2/3 vote in Congress
• Ratification: ¾ approval by state legislatures
• Article VI: Supremacy Clause: national laws are “the
supreme law of the land”- if there is a conflict between a
state and federal law then the federal law wins.
• Article VII: Constitution will take effect when 9 states ratify it.
3. Amendments: 27 Total
15. Basic Principles of Constitution
1. Popular Sovereignty:
– The people are the source of a government’s power. We show this
by voting to give our consent to the government.
2. Rule of Law: Principle that the law applies to everyone, even
those in power.
3. Separation of Powers: divide government into three branches:
legislative, executive, and judicial.
4. Checks and Balances: each branch of the government is able to
check, or restrain, the power of others.
– EX: President can veto laws passed by Congress. Congress could
override a presidential veto. The Supreme Court could rule an act
• French philosopher Montesquieu created ideas of both separation
of powers and checks and balances.
5. Federalism: divide power between different levels of
government-national, state, and local.
16. Northwest Ordinance of 1785
• Described method for new lands to become
17. Types of Powers
• Expressed or Enumerated Powers: powers given to the
federal/national government only.
– EX: Creation of the military.
• Reserved Powers: (10th Amendment) powers given to the
state government only.
– EX: Conduct elections, regulating prisons and establishing
• Concurrent Powers: powers shared by both the national
and state government.
– EX: Taxes
• Implied Powers: powers not listed in the Constitution but
created by the Necessary and Proper Clause/Elastic Clause
for the national government to “stretch” its powers to
carryout its job.
– EX: Creation of a National Bank
18. 1st Amendment/Court Cases
1st Amendment: RAPPS
• Religion: Establishment Clause- can not establish an official state
– Engle v. Vital: no forced prayer in school
• Assembly: freedom of association-can gather in groups (political
• Petition: can write to government officials.
– Hazelwood v. Kuhlmeier: school newspapers can be censored/limit
what they print.
• Speech: also sometimes referred to as freedom of expression.
– Tinker v. Des Moines: students could wear black armbands in protest
of the Vietnam War.
• Upheld freedom of speech/expression.
– Texas v. Johnson: flag burning is legal
• First Amendment can be limited if it harms someone else.
– EX: Libel/Slander, causing violence/riot etc.
19. Rights of the Accused/Court Cases
• 4th Amendment: prevents unreasonable searches and seizures.
– Mapp v. Ohio: protects against unreasonable searches and seizures-
• Exclusionary Rule: evidence obtained illegally can not be used in court.
– New Jersey v. TLO: students can be searched at school is they have
• 5th Amendment: right to remain silent (self incrimination), due
process, double jeopardy, and eminent domain.
– Miranda v. Arizona: must be read rights when arrested
• 6th Amendment: right to lawyer, jury trial etc.
– Gideon v. Wainwright: right to a court appointed lawyer if you cannot
• 8th Amendment: forbids cruel and unusual punishment/excessive
– Furman v. Georgia: death penalty cannot unfairly target minorities.
20. Reversal of Amendments
• 18th Amendment: prohibition of alcohol-
made it illegal.
• 21st Amendment: made alcohol legal again.
• Only time an amendment has been reversed
by another amendment.
• What was the issue?
21. Civil War Amendments &
Civil Rights Cases
• 13th Amendment: • Plessy v. Ferguson: established the
abolished slavery “separate but equal” doctrine
• 14th Amendment: • Plessy is overturned by…
protection under • Brown v. Board of Education:
the law” desegregates public schools
– Uses 14th Amendment “equal protection
• 15th Amendment: under the law” clause to demand equal
treatment and end segregation.
black men • Korematsu v. US: upheld FDR’s order
to send Japanese-Americans to
internment camps (detention centers)
– In response to Pearl Harbor.
– Decision based on “Military Urgency”
22. Suffrage Amendments
• Suffrage: voting rights
• 15th Amendment: suffrage for black men
• 19th Amendment: suffrage for women
• 23rd Amendment: D.C. receives 3 electors to
vote for president and V.P.
– However, they do not have representatives in
• 26th Amendment: lowered voting age to 18.
– Because of Vietnam War/Draft
23. Legislative Branch: Congress
Need to Know Vocabulary:
• Gerrymander: oddly shaped districts to increase voting strength.
– Illegal-sometimes drawn on racial lines.
• Franking Privilege: sending job related mail without paying
• Casework: help given by Congress members to constituents
(people they represent) in dealing with the federal government.
• Pork-Barrel Projects: government project and grants that primarily
benefit a home district.
• Filibuster: long speech in Senate to prevent a vote.
• Cloture: can limit filibusters-required 3/5 of senators.
• Rider: unrelated amendments to a bill.
24. Leaders/Powers of Congress
• Leader: Speaker of the House • Official Leader: Vice President
– (votes to break ties)
• Begins all appropriations bills
(those dealing with • Approves decisions made by
• Chooses the president if no – Approves treaties and the
candidate receives a majority president’s nominees for high-
of the electoral vote (270 ranking officials (cabinet
• Brings charges of • Filibusters/Riders
impeachment (wrong-doing). • Will act as the jury in
– (Johnson/Clinton) impeachment cases-they will
decide if there is enough evidence
to remove an official from office.
**Congress has the power to declare war.
25. How a Bill Becomes a Law
• Ideas from bills come from lots of sources, but only a member of
Congress can introduce a bill to be discussed and voted on.
• In the Senate bills are considered in the order created.
• In the House the Rules Committee decides the order of bills.
• Bills will first be studied in committee.
• Bills must be voted on by both houses.
• Only one version of a bill can be passed-if it is changed then a
conference committee has to work out differences between two
• Once passed in both houses the bill goes to the president.
– If the president signs the bill it becomes a law.
– He can decide to do nothing for 10 days.
• If Congress is in session, the bill becomes a law without the president’s signature.
• If Congress is not in session, the bill dies, being a pocket veto.
– The president can veto a bill.
• However, Congress can override a veto by a 2/3 vote in both houses.
26. Executive Branch: President & V.P.
Executes/Carries Out Laws
Qualifications for President/V.P:
• Native Born Citizen-can not be an immigrant from another
• At least 35
• Resident of U.S. for 14 yrs
Roles of President:
• Chief Executive: Most important role-carries out laws.
• Commander-in-Chief: in charge of military forces; shares war
powers with Congress.
– War Powers Act: limits president’s war powers
• Notify Congress within 48 hrs of troop deployment
• Must bring troops home after 60 days unless Congress approves otherwise
27. Electoral College
• System used to elect president and v.p.
– Each state has as many electors as their number of
representatives and senators in Congress.
– D.C. has 3 electors- 23rd Amendment
– If no one receives a majority of electors then the House
chooses the president.
• 2000 Election:
– Al Gore won the popular vote- most votes total
throughout the country. However, he lost the election
because George W. Bush won the electoral vote.
• Florida's electors decided the election.
28. Dept. of Homeland Security/Patriot Act
• Department of Homeland Security was
created in 2002 by Bush in response to the
9/11 terrorist attacks.
– It’s main job is to improve the nation’s defenses
against terrorism .
• Patriot Act: Passed to combat terrorist after
9/11. Criticized by some for limiting civil
liberties by allowing wiretaps, nationwide
search warrants etc.
29. Federal Bureaucracy
• Executive Agencies: deal with specialized
areas within government.
– CDC: Center for Disease Control and Prevention
– NASA: space program
– FTC: Federal Trade Commission- regulates
– Federal Reserve: nation’s bank
• Law Enforcement:
– FBI-Federal Bureau of Investigation-investigates
federal crimes like kidnapping.
30. Judicial Branch-Courts
• Marbury v. Madison: established judicial review-
allows Court to get rid of unconstitutional acts.
3 Levels of Federal Courts:
• District Courts: have original jurisdiction-jury trial.
• U.S. Court of Appeals: appellate jurisdiction-panel of
• U.S. Supreme Court: highest court, original and
appellate jurisdiction, panel of 9 justices.
– Federal judges are appointed by the president with
• Federal Courts will deal with federal crimes like
espionage (spying), counterfeiting and tax evasion.
31. Political Parties
• One-party system: China (communist)
• Two-party system: U.S.
• Multi-party system: European Countries-U.K.
• We are a representative democracy and a republic where
office is not inherited.
Functions of Parties:
• Select candidates
• Inform the public about issues
• Act as a watchdog-exposing mistakes/corruption of other
party (media also acts as a watchdog)
• Ideologies of Parties:
– Moderate- in the middle (most Americans)
• Third Parties: form when they think the major
parties are ignoring an issue.
– Act as spoilers in election/ don’t win but take votes
away from the major party its most like.
– Can get on the ballot by petition.
• Independents: candidates who don’t have a
32. Political Party Organization
• Grassroots: organization at the local level to gain
• Canvassing: going door to door to get support.
• Precinct Captain: in charge of election district-
would try to register voters/get votes for
candidates at local level.
• National Convention: where presidential
candidates are officially announced.
– Already determined by primary elections.
• Primary Election:
– First party of the election process-narrows candidates so that we only
have one from each party to run in the General Election.
• Open Primary: do not have to be registered Democrat/Republican to vote.
• Closed Primary: must be registered Democrat to vote in Democrat primary;
must be a registered Republican to vote in the Republican primary.
• General Election:
– Election to choose officeholders.
• Incumbents-people already holding office/previously elected have the
• Voting Methods:
– Straight Ticket: vote for all candidates in one party-EX: all Democrats
– Spilt Ticket: vote for candidates from both parties.
– Absentee Ballot: used to vote if you cannot make it to the polls on
• Requirements to Vote:
– Must be 18 and registered.
• Convicted felons cannot vote until their time has been served.
34. Political Vocabulary
• Platform: series of statements that explain a candidates
beliefs and positions.
• Plank: each individual part of a platform.
• PAC-Political Action Committee: formed by special interest
groups to raise money for candidates.
• Interest Group: formed around a special interest or
concern of the group.
– As one person your voice may not be heard, but by being part
of a large group your concerns will be heard.
• Lobbyist: are paid by interest groups to represent their
issue and try to persuade politicians to support their
– Lobbyists CANNOT give Congress members expensive gift.
• Propaganda: an attempt to persuade voters to support a
– EX: endorsements, name-calling and glittering generalities
35. Criminal and Civil Law
• Criminal Law: a crime • Plaintiff:
has been committed. – Criminal case is the
– Felonies: serious crimes- prosecutor or district
murder, rape, etc. attorney.
– Misdemeanors: less – Civil case the person bring
serious crimes: vandalism the lawsuit.
• Civil Law: no crime has – In criminal case is
been committed just “presumed innocent until
some kind of dispute.
– EX: Divorce, Child
Custody, Personal Injury
36. Mediation v. Arbitration
• Mediation: a neutral third party helps two
people work out their differences and reach a
• Arbitration: an arbitrator acts like a judge and
makes the decision for the two parties.
– The arbitrator’s decision is binding.
• Grand Jury: decides if there is enough
evidence to have a case- and bring charges or
indict a suspect.
• A trial jury’s decision must be unanimous.
– If not they have a hung jury- which will result in a
• Jury service is a duty.
• Juveniles do not receive a jury trial.
– The main goal of a juvenile court is rehabilitation.
38. Legal Terms
• Restitution: money paid for damages done.
• Probation: granted for lesser crimes, will not
receive punishment as long as not violated.
• Parole: early release from prison.
– Often done to relive overcrowding in prisons.
• Plea Bargain: deal where the defendant receives
a lesser punishment/sentence by saying they are
• Writ of Habeas Corpus: requires a law official to
bring an arrested person to court and explain why
they are being held.
39. State Government
• Governor-Chief Executive
– Council of State-elected
– Cabinet-appointed by governor
• General Assembly-Legislative Branch
• Courts-Judicial Branch
– District Courts: lowest level-misdemeanors/civil cases
involving less that $10,000
– Superior Courts: civil cases more than $10,000 and
• Only court to have jury.
– Supreme Court: highest court-all death penalty appeals
are heard hear.
40. State Constitution/Court Cases
• We have had 3 Constitutions total.
– Most recent in 1971.
• Declaration of Rights-N.C. Bill of Rights-includes
right to an education.
• N.C. Governor last to receive veto power in 1996.
• Court Cases:
– Swann v. Charlotte Mecklenburg-busing to
– Leandro Case: right to an education-requires schools
to provide adequate education-case was about school
42. Local Government
• Town meeting: found especially in New England,
a legislative assembly of the qualified voters of a
town (example of a direct democracy)
• Annexation: when a town or city takes over more
land area and makes them part of the city/town.
The most common way towns/cities are growing.
• Zoning: local rules that divide a community into
areas and tell how the land can or cannot be
• Property taxes fund county governments.
• Sheriff is in charge of county law enforcement.
43. Responsibilities v. Duties
• Responsibilities: things we SHOULD do…
– Tolerance-respecting others rights
• Duties: things we MUST do…
– Obey Laws
– School under age of 16.
– Males 18-25 register for draft.
– Serve in Court
44. Scarcity/ Basic Economic Questions
• Scarcity is caused by…
– Unlimited wants
– Limited ability to produce stuff
• Basic Economic Questions:
– What to Produce?
– How to Produce?
– For Whom to Produce?
45. Trade-off and Opportunity Costs
• Trade Offs: the alternative you face if you
decided to do one thing rather than another.
• Opportunity Costs: the cost of the next best
use of time and money when choosing to do
one thing rather than another.
46. Types of Costs
• Fixed Costs: expenses that remain the same.
– EX: mortgage
• Variable Costs: expenses that change.
– EX: wages and prices of raw materials
• Marginal Costs:
• Extra Cost associated with an action.
47. Four Factors of Production (CELL)
• Captital: processed resources used to make other
things. EX: steel, lumber, and machines
• Entrepreneurship: individuals who start new
businesses, introduce new products, and improve
management techniques. EX: Bill Gates, Thomas
Edison, and Henry Ford
• Labor: human effort that goes into production; work
done by machines or animals does not count.
• EX: cook, waiter, and assembly line worker
• Land/Natural Resources: things untouched by
48. Circular Flow
• Circular Flow: shows the flow of money opposite
of the flow of goods and services.
• Factor Markets: where productive resources
(labor) are bought and sold.
– Where people work and earn money.
• Product Markets: where goods and services are
offered for sale.
– Where you purchase goods.
• Consumers: largest sector, 75% of consumption
49. Promoting Economic Growth
• Productivity: the rate at which goods/services can be produced.
– Can be increased through division of labor/specialization.
• Specialization: concentration of goods and services that an
individual, business, or nation can produce better than anyone else.
• Division of Labor: the breaking down of a job into separate,
smaller tasks, which are performed by different workers.
– EX: assembly line
• Human Capital: includes the skills, abilities, and motivation of
people. Can increase by training workers or giving them incentives
– Mechanization/ Atomization reduces investments in human capital.
50. Supply and Demand
• Surplus: is the amount by which the quantity supplied is
• Law of Demand: higher than the quantity demanded.
and price move in – A surplus shows that the price is too high.
– P Qd or P Qd • Shortage: the amount by which the quantity demanded is
higher than the quantity supplied.
– A shortage means the price is too low
• Law of Supply:
quantity supplied and • Equilibrium Price: is the price at which a good is bought
price move in the and sold in which there is no surplus or shortage.
same direction. Demand=Supply
– P Qs or P Qs
• Price Ceiling: setting a maximum price that may be
charged for goods and services.
• Price Floor: setting a minimum price that may be charged
for goods and services
– EX: minimum wage
• Sole Proprietorship: business owned by a single
person- most common form of business in the
• Corporation: is a business recognized by law that
has many of the rights and responsibilities of an
individual. A corporation can own property, pay
taxes, sue or be sued.
– Advantage: Has limited liability.
• Stock: ownership shares of a corporation.
• Stockholders: are the owners of the corporation.
• Monopoly: a sole provider of a good or service.
• Natural Monopoly: a market situation in which
the costs of production are minimized by having a
single firm produce the product. EX: Electricity or
• Merger: a combination or two or more
companies to form a single business.
• Antitrust Laws: laws to control monopoly power
and to preserve and promote competition.
53. Business Cycle
• Business Cycle: alternating periods of growth
and decline that the economy goes through.
• Expansion: occurs when real GDP goes up.
– Investing in economy-conditions are improving
• Peak: highest point in the business cycle.
• Recession: occurs when real GDP goes down for
six straight months.
• Trough: low point of cycle
• If a recession becomes severe, it may turn into a
Income Tax-largest source of revenue for both
federal and state governments.
• Proportional Tax: takes the same percentage
of income from everyone.
• Progressive Tax: the tax rate increases as your
income increases- EX: federal income taxes.
• Regressive Tax: the percentage that you pay
goes down as you make more money. EX:
55. Economic Systems
Type of Economic System
• Traditional: Custom and tradition, the past
• Market: Individuals
• Mixed: Individuals & Government Officials
• Command: Government Officials
• Anarchy: no government/chaos
• Theocracy: religious state
• Communism: Karl Marx-Command Economy
• Capitalism/Free Enterprise: U.S. limited
– People are encouraged by profits.
• Interdependence: we rely on others and they
rely on us for things we need.
• Embargo: countries refusing to trade with other
• Free Trade: no trade barriers
• NAFTA: North American Free Trade Agreement:
US, Mexico, and Canada
– Allows free trade between countries.
– Criticism: jobs are going to Mexico
• Federal Reserve: Nation’s bank.
• FDIC: insures money so that if the bank fails.
• Reserve Requirement: money banks have to
have on hand to back up deposits.
• Credit Cards/Loans charge interest