1. GO# 15
U.S. Economy
The U.S. economy is primary a free market
economy; but because there is some
________________ involvement it is
characterized as a ____________________
Markets are generally allowed Private Property: Individuals Profit:
to operate without and businesses have the right to
own real and personal property
as well as the means of
Prices are determined by supply production witout
and demand as buyers and
sellers interact in the
marketplace.
Competition: Consumer Sovereignty:
Consumers determine through
purchases what goods and services
will be produced. Government
involvement in the economy is
limited. Most decisions regarding
the production of goods and
services are made in the private
sector.
_____________________________________________________________________________________
Circular Flow
_______________, _______________ and _______________, and _______________ flow continuously
among _______________, _______________, and _______________ in the U.S. Economy.
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*
*
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2. Private Financial Institutions
Private financial institutions act as _______________________ between ________ and
borrowers that include households and business investors.
Business Organization
There are three basic ways that businesses organize to earn profits.
Proprietorship Partnership Corporation
Entrepreneur
Global Economy Reasons that states and nations trade
Virginia and the U.S. Specialize in the production of certain goods and services, which promotes
efficiency.
Impact of technological innovations