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.
1 t' E, ]0 T" P2 a7 @ 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.2 {) I# Y- A& q! N; z
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.
, x4 v- e Z' C7 C$ `) ~6 G In the 1990s, almost all goods are __13__. Only by effort and money __14__ obtained in the form people wish.! k, d7 T3 `& t% U. h: ^! z+ 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.
0 o* p8 i: C8 S) U8 c EXERCISE:
( D3 Q1 A( W6 r- t# s: \6 r 1. A) limited B) unlimited C) scarcity D) abundant
2 Y/ w( T5 b6 ~) q* T 2. A) want B) problem C) wants D) resources* R+ J3 {1 Q# Y$ {# M, A" H- X
3. A) those B) some C) others D) many
% ^, I* A1 G" x! l" {5 f/ S9 N 4. A) them B) themselves C) ourselves D) ours
( A6 H& k7 E8 `# X7 Y0 } 5. A) expand B) extends C) grows D) increase8 O) k6 A% \1 {% A- e
6. A) always B) sometimes C) often D) never
3 Y: H+ h! R% J. O5 G; l3 L 7. A) management B) function C) board D) group
: S- k8 y5 u0 G9 c3 O; d* ~ u 8. A) people B) economists C ) way D) methods
5 u" C4 P8 P# _: J' Y 9. A) so B) great C) such D) such an
5 h, C2 {( e* z0 U \ 10. A) form B) study C) means D) source
9 G) c9 u T! \. V6 i7 b9 A& z 11. A) practically B) in practice C)in reality D) practicably* ]" T3 e( o% T) S1 e( Y
12. A) the B) / C) for D) with. t( m3 G" e' k1 J2 E h, P
13. A) plentiful B) scarce C) abundant D) in full supply5 D- N! c/ n4 n( P; Z$ z
14. A) they can be B) can they be C) they must be D) must they be$ a8 Q0 }* M7 M) o% e) a/ v G6 k
15. A) are led to B) leads C) lead to D) leads to
3 |) d0 m+ S2 \' | KEY:, F9 z3 W8 D, V
A C A C C D C D C B C C B B D |