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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 __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. Nations face the same problem. As a countrys 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. 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 governments involvement in cleaning the environment. | 
