Founding ideas

The Declaration of Independence is the document in which the American colonies announced that they were separating from Great Britain. The Continental Congress adopted it on July 4, 1776.

The Declaration did one main thing: it announced and declared independence. It said the thirteen colonies were free from British control and no longer ruled by the British king. It was written after fighting had already begun, and it explained to the world why the colonists were fighting.

It also matters for its ideas. It says that all men are created equal, which is understood today as all people being created equal. It says people have rights that no government hands out and no government may take away. Such rights are called inherent rights, or natural rights.

Its most quoted line names three of them: life, liberty, and the pursuit of happiness. If a question asks for two rights in the Declaration of Independence, name any two of those three. The words "Life, Liberty, and the pursuit of Happiness" come from the Declaration of Independence. They are not in the Constitution.

It also says where a government's power comes from. The Declaration says that governments are "instituted among Men, deriving their just powers from the consent of the governed." That means a government may govern only because the people agree to it. If a government destroys the people's rights, the people may change it. This is the idea of self-government, and it shaped the Constitution that came later.

Several important ideas run through both the Declaration of Independence and the Constitution. Equality and liberty are two of them. Natural rights are another: rights that no government gives and no government may take away. The social contract is the agreement between a people and their government. Limited government means the government may do only what the law allows. Self-government means the people rule themselves.

The two documents have different jobs. The Declaration explained why the country separated from Britain and what it believed. The Constitution, written eleven years later, set up the government that still runs the country.

The rule of law is a simple idea that carries a lot of weight. Everyone must follow the law. Leaders must obey the law. The government must obey the law. No one is above the law.

The same law applies to a president, a police officer, a judge, and a wealthy person. It also applies to a person who arrived in the country last week. Officials cannot invent rules as they go along, punish someone they dislike, or ignore a law they find inconvenient. If they try, a court can stop them.

The rule of law needs written rules that people can know in advance. Laws are published so anyone can read them. Courts explain what the laws mean. When two people disagree about the law, or when a person disagrees with the government, they can bring the dispute to a court and get a decision.

The Constitution supports the rule of law in several ways. The courts can decide that a law goes against the Constitution, and such a law cannot be enforced. Officials swear an oath to support the Constitution. The House of Representatives can charge a federal official with serious wrongdoing. This is called impeachment. The Senate then holds a trial and can vote to remove the official from office.

The rule of law also protects a person accused of a crime. The government must follow fair legal steps before taking away anyone's freedom or property. An accused person has the right to be told the charge, to have a trial, and to have a lawyer.

In everyday life this is what allows an ordinary person to take a government agency to court and win. The court decides on the law and the facts, not on who is more powerful.

The economic system of the United States is a capitalist economy. It is also called a market economy or a free market economy. Any of those answers is accepted on the test.

In a market economy, most businesses, land, and other property are owned by private people and private companies rather than by the government. People decide for themselves what to produce, what to sell, and what work to do. Prices are mostly set by supply and demand, that is, by what sellers offer and what buyers are willing to pay.

Competition is central to the system. Several companies sell similar goods and services, and buyers choose between them. A business that customers like can grow, and one they avoid can fail. No central office plans the economy as a whole.

The government still plays a real part. It collects taxes, issues the country's money, and pays for things such as roads, defense, and the courts. It also makes rules to protect workers, consumers, savers, and the environment, and it runs large programs such as Social Security. Because of this, some people describe the United States as having a mixed economy, but the answer expected on the test is capitalism or a market economy.

For someone new to the country, the practical meaning is straightforward. You may work for an employer or start your own business. You may own property, change jobs, and sign contracts. The courts will enforce the agreements you make.