Explain the importance of economics.

Explanation should include the role of

• consumers
• goods and services (e.g., wants and needs, production, resources)
• producers
• scarcity
• optimal distribution of resources in society.

Process/Skill Questions:

• What is the effect of scarcity?
• How does one identify the target market for a product?
• How does one differentiate between a want and need?
• What is the role of opportunity cost?