Unit 9 Test Flashcards
What are the three basic types of profit seeking business structures?
Proprietorship, partnership and corporation
What continuously flows among households businesses and markets in the US economy?
Resources, goods and services, and money
What provides financial capital that can be borrowed for business expansion and increased consumption?
Individual and business savings and investments
Who owns the resources used in production, sell the resources, and use the income to purchase products?
Individuals or households
Who buys resources, makes products that are sold to individuals, other businesses and the government and uses the profits to buy more resources?
Businesses or producers
Who acts as intermediaries between savers and borrowers that include households and business investors?
Private financial institutions
What does government used to provide public goods and services
Tax revenue
What are the types of private financial institutions?
Banks,
savings and loans,
and credit unions
How do banks encourage saving and investing
Paying interest on deposits
Why do Virginia in the United States pursue international trade
To increase wealth
What are the four reasons states and nations trade
To obtain goods and services they cannot produce themselves
To buy goods and services at a lower cost
To Sell goods and services to other countries
To create jobs
Why do Virginia and the USA specialize in the production of certain goods and services
To promote efficiency and growth
What is the two impact of technological innovations
The global flow of information, capital, goods and services,
and lowers the cost of production
