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10
10
The wise men invented the art of giving Christmas presents. This was the story
of two foolish young people who sacrificed for each other their most important
possessions. But of all who give presents, these two were the wisest.
Answer the questions
1. What two possessions did Della and Jim Dillingham value most highly?
2. How much did Della have to spend on a Christmas present for Jim?
3. How did she manage to buy him a present?
4. What did she buy for Jim?
5. What did Jim do for her?
6. How did he get the money to buy it?
7. How long ago do you think the story took place? Why?
8. How do you know that the Dillinghams were poor?
9. How long do you think they had been married?
10. Do you think the Dillinghams were happy?
Fill in the gaps using the words given
(reduce, welfare system, allocate, services, incentives, tradeoff, goods, efficiency,
equity,)
1. Consider a student who must decide how to allocate her most valuable
resource—her time.
2. When people are grouped into societies, they face different kinds of _____.
3. Laws that require firms to _____ pollution raise the cost of producing _____
and _____.
4. _____ means that society is getting the most it can from its scarce resources.
5. _____ means that the benefits of those resources are distributed fairly among
society's members.
6. Some of these policies, such as the _____ or unemployment insurance, try to
help those members of society who are most in need.
7. The poor should not be ignored just because helping them distorts work _____.
LESSON 2
Principle #2: The Cost of Something Is
What you Give Up to Get It
Because people face tradeoffs, making decisions requires comparing the costs
and benefits of alternative courses of action. In many cases, however, the cost of
some action is not as obvious as it might first appear.
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