The Central Problem of Economics
2 q$ P$ a4 I8 W, M. y4 r) Y The central problem of economics is to satisfy the people"s and nation"s wants. J8 U, x. `- r" J
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. - {" s# a3 m$ X4 l& L' G& V
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. 1 i" \- Q+ L+ M& Z2 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.
. c t, ~& m G0 [* C" I) L1 q9 G In the 1990s, almost all goods are __13__. Only by effort and money __14__ obtained in the form people wish. - w7 A E( N& V' y# z: V: I7 y
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. 3 l) J# g0 K$ U
1. A limited B unlimited C scarcity D abundant
6 I) a% w2 }" K0 I2 _) P+ \& x 2. A want B problem C wants D resources
3 p1 e: F+ e! I4 d ~% N- V 3. A those B some C others D many , M7 h( l# b X$ P: A
4. A them B themselves C ourselves D ours + o' b3 q5 I1 R2 E- j# v
5. A expand B extends C grows D increase |