| A | B |
|---|
| competition | rivalry between businesses that keeps prices low and quality high |
| private property | ownership of goods and resources |
| economic flow | the cycle of how money goes from households, businesses, and the government |
| free market | people can buy and sell goods and services without undue interference from the government |
| consumer sovreignty | buyers are in control of what goods are made and their prices |
| profit | the money you keep after your debts are paid |
| mixed economy | government makes decision about the public; individuals make decisions for private sector |
| U.S. economy | has 5 characteristics; is mixed economy |
| corporation | recognized by the law as a legal person |
| entreprenuer | takes a risk to make a profit |
| consumer | a buyer of goods and services |
| sole proprietorship | assumes all the risk and gets all the profit |
| shares the risk and profit | partnership |
| # of types of business in U.S. | three |
| # of characteristics of U.S. economy | five |
| economic system that is centrally planned | command system |
| economic system with much choice for consumers | free market system |
| opportunity cost | what is given up when a decsion is made |
| financial institutions | savings and loans, credit unions, banks |
| interest | money paid to savers in financial institutions |
