The tenth grade unit of the FICSS series (Focus on Inner City Social Studies -- see SO 008 271) deals with the political-economic systems in the United States. The first unit of the sequence focuses specifically on capitalism in a democracy. The document deals with both the theoretical and practical aspects of capitalism. The theoretical section examines the fundamentals of the political and economic systems; the practical examines the extent to which the theory is realized in practice. It is intended that pupils will ask questions concerning the what, how much, and for whom of production; who makes and enforces the rules; and how rules may be modified. From the learning activities, students become aware of the money system, the involvement of politics in capitalism, and specific areas of economics such as commodities, competition, Gross National Product, and government spending. The content of the unit includes a general introduction to the program and to the unit; essential source materials; knowledge, skill, and behavioral objectives; learning activities; and supplementary teacher and student resources. (Author/JR)