| A | B |
|---|
| What consists of earnings after all expenses have been paid? | profit |
| What is a rivalry between producers of a good or service that results in better quality goods and services at lower prices? | competition |
| This is when consumers determine through purchases what goods and services will be produced. | consumer sovereignty |
| Individuals and businesses have the right to own this without undue interference from the government. | private property |
| What are the 3 types of business ownership? | proprietorship, partnership, corporation |
| Who plays an important role in all 3 business organizations? | entrepreneurs |
| What is a form of business organization with 1 owner who takes all the risks and all the profits? | proprietorship |
| What is a 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? | corporation |
| Who can take risks to produce goods and services in search of profit and may establish any 1 of the 3 types of businesses? | entrepreneur |
| What is a form of business organization with 2 or more owners who share the risks and the profits? | partnership |
| Name 4 things that flow continuously among households, businesses and markets in the US economy. | resources, money, goods, services |
| In economic flow, what can provide financial capital (money) that can be borrowed for business expansion and increased consumption? | individual saving and investment |
| In economic flow, who owns the resources used in production, sells the resources and uses the income to purchase products? | individuals |
| In economic flow, who buys resources, makes products that are sold to individuals, other businesses and the government, and uses the profits to buy more resources? | businesses |
| In economic flow, who uses tax revenue from individuals and businesses to provide public goods and services? | government |
| Who act as intermediaries (middle men) between savers and borrowers? | private financial institutions |
| Name 3 types of private financial institutions. | banks, savings and loans, credit unions |
| Private financial institutions receive _____ and make _____. | deposits, loans |
| Private financial institutions encourage saving and investing by paying _____ on deposits. | interest |
| What do Virginia and the United States do in order to increase wealth? | pursue international trade |
| What do we call worldwide markets in which the buying and selling of goods and services by all nations takes place? | global economy |
| Give 4 reasons why states and nations trade. | to get things they can't make, to get things at a lower cost, to sell things to other countries, to create jobs |
| Virginia and the United States _____ in the production of certain goods and services which promotes efficiency and growth. | specialize |
| Innovations in technology (for example the internet) contribute to what? | the global flow of information, money, goods and services |
| Use of technological innovations does what to the cost of production? | lowers it |
