The Central Problem of Economics
The central problem of economics is to satisfy the peoples and nations wants.
The problem we are faced with is that our resources, here identified as money, are . The only way we can resolve our problem is to make choices. After looking at our resources, we must examine our list of and identify the things we need immediately, those we can postpone, and we cannot afford. As individuals, we face the central problem involved in economicsdeciding just how to allocate our limited resources to provide ourselves with the greatest of our wants.
Nations face the same problem. As a countrys population , the need for more goods and services grows correspondingly. Resources necessary to production may increase, but there 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 of directors, or in the chamber of the House of Representatives in Washington, the basic problem still exists. We need to find of allocating limited resources in order to satisfy unlimited wants.
A short time ago economists divided goods into two categories, free and economic. The former, like air and water, were in abundance that economists had no concern for them. After all, economics is the of scarcity and what to do about it. Today many of these free goods are very expensive to use. Pollution has made clean air and water expensive for producers who have to filter their waste products, for consumers who ultimately pay for the producers extra costs, and taxpayers who pay for the governments involvement in cleaning the environment.
In the 1990s, almost all goods are . Only by effort and money can they be in the form people wish.
Meeting the needs of people and the demands from resources available leads to the basic activity of production. In trying to unlimited wants from limited economic goods, production leads to new problems in economics.
1 A limited B unlimited C exhausted D abundant
2 A concepts B supplies C wants D resources
3 A those B some C others D many
4 A expression B description C satisfaction D limitation
5 A climbs B extends C grows D raises
6 A always B sometimes C often D never
7 A management B function C board D company
8 A necessities B possibilities C needs D methods
9 A so B great C such D such an
10 A form B study C means D source
11 A in time B in practice C in reality D in turn
12 A then B also C for D with
13 A plentiful B scarce C poor D enough
14 A accepted B obtained C offered D discovered
15 A create B depress C restrain D meet
【参考答案】 :1. A 2. C 3. A 4. C 5. C 6. D 7. C 8. D 9. C 10. B 11. C 12. C 13. B 14. B 15. D
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