Unit 9: U. S. Economic System
The Fed Source: www.wikipedia.org
Unit SOLs:
  • There are three basic ways that businesses organize to earn profits.
  • Entrepreneurs play an important role in all three types of business organizations.
  • Resources, goods and services, and money flow continuously among households, businesses, and markets in the United States economy.
  • Private financial institutions act as intermediaries between savers and borrowers that include households and business investors.
  • Virginia and the United States pursue international trade in order to increase wealth.

Unit Vocabulary:

Proprietorship:Form of business ownership with one owner who takes all the risks and earns all the profit.

Partnership:Form of business ownership with two or more owners sharing risks and profits.

Corporation:Form of business ownership authorized to act as a legal person regardless of the number of owners. Liability is limited to investment.

Entrepreneur:Person who takes a risk to produce goods and services in search of a profit. Could be any type of business ownership.


Businesses: Producers: Makers of goods/ services.

Business expansion: Business growth

Increased consumption: Buying more things.

Private financial institutions: Include things like banks, credit union, and savings and loan institutions.

Deposits:Putting money into an account.

Interest:Money paid for use of someone else’s money.

Global economy:Worldwide markets in which the buying and selling of goods and services takes place by all nations.