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) u6 E1 D/ H3 {" K! O; X. _The Central Problem of Economics- a4 t! m1 }3 J/ R% t# h- [
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The central problem of economics is to satisfy the people's and nation's wants.
4 E1 L) {4 V, H9 a7 Z) D The problem we are faced with is that our resources, here identified as money, are __1__. The only way we can resolve our problem is to make choices. After looking at our resources, we must examine our list of __2__ and identify the things we need immediately, those we can postpone, and __3__ we cannot afford. As individuals, we face the central problem involved in economics-deciding just how to allocate our limited our limited resources to provide __4__ with the greatest satisfaction of our wants.
7 v1 H, i6 {! |* }# y& D; v+ ^2 G Nations face the same problem. As a country's population ___5__, the need for more goods and services grows correspondingly. Resources necessary to production may increase, but there __6__ are enough resources to satisfy the total desires of a nation. Whether the budget meeting is taking place in the family living room, in the conference room of the corporation __7__ of directors, or in the chamber of the House of Representatives in Washington, the basic problem still exists. We need to find __8__ of allocating limited resources in order to satisfy unlimited wants.* G6 g. A' B2 M, o9 a# x. K
A short time ago economists divided goods into two categories, free and economic. The former, like air and water, were in __9__ abundance that economists had no concern for them. After all, economics is the __10__ of scarcity and what to do about it. Today many of these "free goods" are __11__ very expensive to use. Pollution has made clean air and water expensive for producers' extra costs, and __12__ taxpayers who pay for the government's involvement in cleaning the environment.
+ ~1 E: y4 C; T2 f2 j" _ In the 1990s, almost all goods are __13__. Only by effort and money __14__ obtained in the form people wish.9 U1 \. Y; G7 K, b! r# u
Meeting needs of people and the demands from resource available __15__ the basic activity of production. In trying to meet unlimited wants from limited economic goods, production leads to new problems in economics.
* Z# c, M# _' C$ P4 c& p. iEXERCISE:
2 T: Z$ X( b/ P$ U1. A) limited B) unlimited C) scarcity D) abundant3 N ?5 m$ Q t( Z5 B9 B
2. A) want B) problem C) wants D) resources" n4 |" f6 O. a4 l" f
3. A) those B) some C) others D) many5 f l$ B% I( ]9 @4 M
4. A) them B) themselves C) ourselves D) ours7 L% P* q$ |. ?# F! U
5. A) expand B) extends C) grows D) increase3 q" s; N- L3 Q7 D9 ^2 n
6. A) always B) sometimes C) often D) never
/ R: }4 f9 J C) _: _! Q; ^' y8 l% w7. A) management B) function C) board D) group; T/ Z; {( ~) z* ~/ ~
8. A) people B) economists C ) way D) methods8 q5 P; Q: Z$ i. b$ ]. m
9. A) so B) great C) such D) such an
% A1 v/ B6 m4 B" O8 ^7 t( ~10. A) form B) study C) means D) source. I2 g) s8 \0 O |- M: l
11. A) practically B) in practice C)in reality D) practicably
1 E# A b3 x6 F12. A) the B) / C) for D) with: h5 N+ ? X' y$ f2 S
13. A) plentiful B) scarce C) abundant D) in full supply5 ~7 N5 e: c- `9 p2 F2 Z1 G
14. A) they can be B) can they be C) they must be D) must they be, E; r! F% n% d) t" h1 p
15. A) are led to B) leads C) lead to D) leads to
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A C A C C D C D C B C C B B D |