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The Central Problem of Economics
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The central problem of economics is to satisfy the people's and nation's wants.) A) v& Y+ I* i; b% D' w
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.
4 n' Z( x! |2 V3 [2 M& H# 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.! I- O6 u: |8 G+ t% Y5 W
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.: Q! C6 D( n2 L7 O$ @8 @
In the 1990s, almost all goods are __13__. Only by effort and money __14__ obtained in the form people wish.9 f3 m& W% C6 j! P* G
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.
, K% i' x4 B7 V* gEXERCISE:
u$ q! l e+ C W3 E3 T) Y7 Z1 [1. A) limited B) unlimited C) scarcity D) abundant3 u/ Q+ X; |; ^9 y
2. A) want B) problem C) wants D) resources2 D% u! E1 M' i
3. A) those B) some C) others D) many
5 o' B! o2 o7 ?- x6 g3 |4. A) them B) themselves C) ourselves D) ours7 s5 w4 J- p+ Y* }! w
5. A) expand B) extends C) grows D) increase
# L% ^9 c* E$ y/ B, y# q0 Q6. A) always B) sometimes C) often D) never0 V0 G! [' h$ {/ w* }% g7 O
7. A) management B) function C) board D) group
* a6 `7 c6 y+ e8. A) people B) economists C ) way D) methods( C8 O; q# N6 ~5 [2 w
9. A) so B) great C) such D) such an
" i( x9 N0 b. E10. A) form B) study C) means D) source) X+ C' @* \& T; X/ E) u& R" H
11. A) practically B) in practice C)in reality D) practicably
9 U- E: d/ u& `5 K6 j. z12. A) the B) / C) for D) with
0 E* Z8 D7 N+ \4 f5 {13. A) plentiful B) scarce C) abundant D) in full supply* V( _) i& `6 v3 p
14. A) they can be B) can they be C) they must be D) must they be8 p1 |: Y9 d9 |
15. A) are led to B) leads C) lead to D) leads to ) F+ a. O* R+ X" u: A. Y. i7 D
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A C A C C D C D C B C C B B D |