The central problem of economics is to satisfy the people’s and nation’s wants. The problem we are faced with is that our【C1】______, here identified as money, are【C2】______. The only way we can resolve our【C3】______ is to make choices. After looking at our resources, we must examine our list of【C4】______and identify the things we need【C5】______, those we can postpone, and【C6】______we cannot afford. As individuals, we face the central problem involved in economics — deciding just how to allocate our limited resources to provide ourselves with the greatest【C7】______of our wants.
Nations face the same problem. As a country’s population【C8】______, the need for more goods and services grows【C9】______. Resources necessary to production may increase, but there are【C10】______enough resources to satisfy the total desires of a【C11】______. Whether the budget meeting is taking place in the family living-room, in the conference room of the corporation【C12】______of directors, or in the chamber of the House of Representatives in Washington, the basic problem still exists. We need to find【C13】______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【C14】______abundance that economists had no concern about【C15】______of scarcity and what to do about it. Today many of these “ free goods“ are in【C16】______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【C17】______tax-payers who pay for the government’s involvement in cleaning the environment.
In the 1990s, almost all goods are【C18】______. Only by effort and money can they be【C19】______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【C20】______unlimited wants from limited economic goods, production leads to new problems in economics.
