Explain the nature of economics.

Explanation should include the following concepts:

• Economics is a field of study that explains how individuals, businesses, and societies produce, distribute, and use products and services.
• Economics focuses on the use of limited resources for unlimited wants.
• Economics is global.
• Supply and demand affect price.
• Scarcity causes consumers to make choices. 

Process/Skill Questions:

• What are the three economic questions that must be answered by each society?
• How are wants and needs different? What are the roles of wants and needs in economics?
• What are the four factors of production?
• How do businesses and societies deal with scarcity?
• How does supply and demand affect price?