Title: Identify the components of the economic process.
Course: Agricultural Business Fundamentals I (18201-I) > Section: Understanding Basic Economics

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?