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Ex. 14. Make up sentences with the jumbled words.

in / are limited / the factors of production / any country / in supply.

does not produce / and / printing / services / more money / more goods.

for government / exists / as well as / this problem / and / for individuals / businesses.

by / is faced / scarcity / and / every society / the problem / choice / of.

Ex. 15. Work with a partner and decide how you would explain these notions to an



goods a bank note needs

a citizen luxury to economize

Ex. 16. Translate the derivatives and use them in the sentences that follow.


1. to apply, applied, application

2. industry, industrial, industrialized

3. scarce, scarcity, scarcely

4. to educate, education, educative

5. consume, consumer, consumption


A. Resources of water are _________________in hot and dry areas.

B. Engineers have found some _________________fields for this new material.

C. Television in any country has some _________________programmes.

D. Such countries as Canada, Australia and most European countries belong to ____________ countries.

E. The________________ of electricity by an average family has increased.

Ex. 17. Group the following words into ten synonymous groups.


choice want currency work desire

community goods option shortage labour

enterprise extravagance cash alternative money

luxury company ground deficit society

land firm scarcity wish population


Ex. 18. Multiple choice. In the space provided, write the letter of the item that best

Complete the statement.


____ 1. The main idea of this chapter is that

a. human wants are limited

b. resources are unlimited

c. individuals must make choices as they use their scarce resources.

d. only undeveloped countries face the problem of scarcity.


____ 2. When economists speak of the need to economize, they are taking about

a. saving.

b. getting the most from what you have

c. studying economics

d. spending as little as possible.

____ 3. Scarcity is a condition that

a. exists only in poor countries.

b. only poor individuals experience.

c. all individuals and societies face.

d. rich people never experience.

____ 4. Which of the following would be a good in the economic sense?

a. a haircut.

b. a pair of scissors.

c. a visit to a doctor.

d. advice from a lawyer.


____ 5. Labour, to the economists, is

a. organizing a business and managing the operation.

b. anything generally accepted in exchange for property, goods or services.

c. the physical and mental effort needed to produce goods and services.

d. owned, with the other factors of production, by the company using it.


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