Identify the components of the economic process.
Identification should include
- production and consumption
- incentives, including the profit motive
- tradeoffs, weighing the costs and benefits of alternatives
- consumers
- producers
- market.
Process/Skill Questions:
- What is the profit motive?
- What is the economic goal of producers? Consumers?
- What is revenue?
- What incentives do producers have to meet consumers' desires?
- Why must producers change their products to meet consumer demands?
- What happens to price if production does not meet demand?