Conceptual Understanding - SS.12E.2.a:
Given that the resources of individuals (and societies) are limited, decisions as to what goods and services will be produced and to whom to sell one’s resources are driven by numerous factors including a desire to derive the maximum benefit and thus the most efficient allocation of those resources.

Conceptual Understanding - SS.12E.2.b:
The choices of buyers and sellers in the marketplace determine supply and demand, market prices, allocation of scarce resources, and the goods and services that are produced. Consumers influence product availability and price through their purchasing power in the product market in a perfect world. Product market supply and demand determine product availability and pricing.

Conceptual Understanding - SS.12E.2.c:
Businesses choose what to supply in the product market based on product market prices, available technology, and prices of factors of production. The prices of those factors are determined based on supply and demand in the factor market. The supply and demand of each factor market is directly related to employment. Debates surround various ways to minimize unemployment (frictional, structural, cyclical).