The central problem of economics is to satisfy the people's and nation's wants. 7 E7 v% k% G; V ^& c
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. ( E( u6 J/ b( n
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 \9 x; O1 A+ B/ }: @+ r
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.
! F: k# ?% F' k9 A( @6 b In the 1990s, almost all goods are __13__. Only by effort and money __14__ obtained in the form people wish. 5 G2 C- E5 r& \$ p3 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.
9 t5 ]; n/ R5 q$ } EXERCISE: " R4 Y7 I" t# {# r' Q
1. A) limited B) unlimited C) scarcity D) abundant
( u1 D( l# w' o 2. A) want B) problem C) wants D) resources
% o+ `7 i5 c% V$ k$ L! E3 _ 3. A) those B) some C) others D) many
1 F& F( L3 q6 \5 ` 4. A) them B) themselves C) ourselves D) ours - r9 t7 W! [) r! P
5. A) expand B) extends C) grows D) increase
5 ~5 e' p, ~# Z7 E! E 6. A) always B) sometimes C) often D) never & n5 n# `5 M$ K a9 s$ o* |
7. A) management B) function C) board D) group
! k5 h% U( \+ f: w2 U 8. A) people B) economists C ) way D) methods 0 O/ w+ D! s7 m
9. A) so B) great C) such D) such an
; y8 e2 f) J* I3 @+ J- r 10. A) form B) study C) means D) source ! Y2 L& ?, X' j' G8 L$ G1 e
11. A) practically B) in practice C)in reality D) practicably ( q& e4 I: h" T$ T# M
12. A) the B) / C) for D) with
" m3 J# P3 p5 Q- ^ 13. A) plentiful B) scarce C) abundant D) in full supply
% I& h0 u% A/ h 14. A) they can be B) can they be C) they must be D) must they be . Q/ I: x7 w( X% o4 Y. A
15. A) are led to B) leads C) lead to D) leads to
% ?8 k( b" z1 ~( B9 D6 W KEY:
- [. S( A3 m3 o$ G( Z' ^4 L A C A C C D C D C B C C B B D |