X. Read the text and choose the correct word or words from A, B, C or D to fill in each gap

Because resources are insufficient to (1) ____ all the things we want, we have to choose how best to use those resources. In deciding how to use our limited resources, certain (2) ____ are necessary.

The value of what we give up when resources are used to produce one thing rather than another is the opportunity cost of what is produced. In order to get the greatest (3) ____ from our limited resources, we should use then for the (4) ____ that best serve our needs. If we don’t, then the opportunity costs of what we produce will be too high.

A production possibility frontier (PPF) shows the trade-off between two alternative uses of a resource.

The PPF shows the opportunity cost of producing more of one good by showing the amount

of the (5) ____ good that is (6) ____. Production possibility frontiers generally curve outward because of increasing opportunity costs incurred as more of one good is produced. Production possibility frontiers are economic (7) ____ helpful in analyzing the opportunity costs of trade-offs.

All economic systems must resolve three basic economic questions: what to produce; how to produce; for whom to produce. (8) ____ cannot efficiently be dealt with unless the economy

(9) ____ its resources to producing the goods and services most needed and desired. An economic system needs also to (10) ____ the most efficient production methods with the resources available. Finally, an economic system must determine who gets how much of what is produced.

1. A do B construct C produce D build

2. A advantages B trade-offs C cuts D trades

3. A benefits B changes C income D allowances

4. A effects B outputs C results D inputs

5. A selective B conventional C competitive D alternative

6. A satisfied B given away C abandoned D sacrificed

7. A tools B weapons C equipment D gadgets

8. A rarity B diversity C scarcity D variability

9. A donates B presents C allocates D surrenders

10. A utilize B exercise C operate D handle