What is the difference between needs and wants?

What is scarcity?

How does scarcity affect

• consumers?

• producers?

What basic economic questions must be answered by society because of scarcity?

List the 4 factors of production.

What is the difference between a product market and a factor market?

What role does a business have in

• a product market?

• a factor market?

What role do households have in

• a product market?

• a factor market?

Who was Adam Smith? What did he write?

Explain the relationship between the terms trade-off and opportunity cost?

What is meant by the term utility?

Define each term:

• underutilization

• efficiency

What are the three things a production possibilities frontier shows?

Explain the Law of Increasing Opportunity Costs.