The Central Problem of Economics
; n. e( T! `$ t# c& m The central problem of economics is to satisfy the people"s and nation"s wants. " b" Q+ W, k1 H/ u# V
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. 9 G+ V% }' v! z- E6 O/ O
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.
( [6 @6 N/ T, [0 T, 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.
3 ?& H3 |. W" h* h In the 1990s, almost all goods are __13__. Only by effort and money __14__ obtained in the form people wish.
. j" _ Z P L$ P' i 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. 5 u, Y' j h" o& q9 E9 e
1. A limited B unlimited C scarcity D abundant
! I! U( [5 K; s9 H. i/ } 2. A want B problem C wants D resources 2 v& k+ F9 Y$ D' y p- t8 x! A
3. A those B some C others D many
9 n6 f5 R$ O( f- C/ s 4. A them B themselves C ourselves D ours
7 i5 v0 s/ K1 p2 F$ t c9 K# m 5. A expand B extends C grows D increase |