Identification should include

• the nature of economics (e.g., the concept that economics involves decisions made by individuals, businesses, and societies regarding the use of resources)
• economic activities (e.g., production, consumption, distribution, and exchange)
• economic resources (e.g., land, labor, capital, entrepreneurship) used to produce goods and services
• supply
• demand (e.g., inelastic/elastic)
• profit (i.e., money left over after expenses are paid)
• cost
• opportunity cost
• competition (e.g., indirect/direct, price/non-price)
• needs and wants.

Process/Skill Questions:

• Why do individuals, businesses, and societies need to make economic choices?
• How does price affect supply and demand?
• What is the difference between elastic and inelastic demand?
• How does profit drive business?
• How do nonprofit organizations function as a business?
• What effect does profit have on the survival of a business?