The Central Problem of Economics 4 {9 H2 t& v' j2 K1 w2 f
The central problem of economics is to satisfy the people"s and nation"s wants. - U3 _+ b$ `" X+ W, B' r$ c4 E2 s* V6 K
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. ; p3 Q' I( `! ^3 D5 w9 Y, C/ {+ p
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.
: q) n- w$ N4 L% L 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. 0 V0 U2 b$ q" b% A+ f6 ]' O* W
In the 1990s, almost all goods are __13__. Only by effort and money __14__ obtained in the form people wish. , A; P4 z4 L; C5 s
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. : A% Z" R+ E4 q" q, }! O
1. A limited B unlimited C scarcity D abundant
' T: |% o) f8 a/ q9 Q 2. A want B problem C wants D resources
" n1 O# ]8 E# g. ]. a 3. A those B some C others D many
9 b3 f. k3 T, v$ Y4 \7 k" K0 H) B 4. A them B themselves C ourselves D ours
% {6 B' @ I$ o$ R2 S 5. A expand B extends C grows D increase |