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.% M/ |8 X# y: X: N8 D$ T( T4 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.
9 }; X2 E* m' ^: \5 _- ?9 s' y7 b 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.
) e, B6 s; ^# S In the 1990s, almost all goods are __13__. Only by effort and money __14__ obtained in the form people wish.- w0 p! |. X, f$ \& t
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 S4 k& H5 G5 u* O( ^* x# j
EXERCISE:
& u5 L' U& x* K4 G% }4 @9 S 1. A) limited B) unlimited C) scarcity D) abundant& i1 r7 f8 Y0 V
2. A) want B) problem C) wants D) resources
. m, E. t; G2 S, J3 t3 H0 i9 I 3. A) those B) some C) others D) many
( U" t* r* X+ H* ^0 t; s 4. A) them B) themselves C) ourselves D) ours
q0 B( w G) R& }1 G2 U5 e 5. A) expand B) extends C) grows D) increase+ ?+ x0 V+ v$ b! W0 m) u) T% e
6. A) always B) sometimes C) often D) never9 O" A$ i4 ? R \. w
7. A) management B) function C) board D) group3 s% p* c, k( Y" H
8. A) people B) economists C ) way D) methods# k" ]4 D, T9 M
9. A) so B) great C) such D) such an
5 x t. _ r4 N" t 10. A) form B) study C) means D) source0 w, t `8 c' c r# F6 `. P
11. A) practically B) in practice C)in reality D) practicably
( l4 ~# Y" G6 e x 12. A) the B) / C) for D) with
( I3 [' G* X/ @. b* j& H8 |0 F 13. A) plentiful B) scarce C) abundant D) in full supply
' Y2 S. W# |# w n- @& q 14. A) they can be B) can they be C) they must be D) must they be l8 i* s/ O8 V0 @" @
15. A) are led to B) leads C) lead to D) leads to$ v% G9 O, \1 J" C) d
KEY:- ^3 W2 I* o3 i7 K
A C A C C D C D C B C C B B D |