| A | B |
|---|
| profit | consists of earnings after all expenses have been paid |
| consumer sovereignty | consumers determine through purchases what goods will be provided |
| private property | individuals and businesses have the right to own personal property as well as the means of production without undue interference from the government |
| competition | rivalry between producer/sellers of a good or service resulting in a better quality of goods and services at a lower price |
| proprietorship | form of business organization with one owner who takes all the risks and all the profits |
| corporation | form of business organization that is authorized by law to act as a legal person regardless of the number of owners and where owners share profits |
| individuals (households) | owns the resources used in production, sells the resources and uses the income to purchase more products |
| partnership | form of business organization with 2 or more owners who share the risks and the profits |
| entrepreneur | takes risk to produce goods and services in search of profit and may establish any one of the 3 types of business structures |
| resources,goods,services,money | flow continuously among households, businesses and markets in the United States economy |
| businesses (producers) | buys resources, makes products that are sold to individuals, other businesses and the government, and uses the profits to buy more resources |
| government | uses tax revenue from individuals and businesses to provide public goods and services |
| banks,savings and loans,credit unions | types of a private financial institutions |
| interest | Private financial institutions encourage saving and investing by paying this on deposits |
| global economy | worldwide markets in which the buying and selling of goods and services by all nations takes place |
| private financial institutions | acts as intermediaries between savers and borrowers |
| international trade | Virginia and the United States do this in order to increase wealth |
| technological innovations | lowers the cost of production |
| FCC | Federal Communications Commission |
| EPA | Environmental Protection Agency |
