The Right Answers

Blank 1: Use Math Strategy for this blank. Initially, you might think that it is a support because of the word "Given," but I would approach this as a contrast because of the word "astonishing." The second idea states that the economists have "failed to respond to the shortcomings." Our expectation would be that these shortcomings must be small or not obvious. But the word "astonishing" tells us to go against our expectations, so we guess a word like "obvious" or "huge."

The answer choice that closely matches these guesses is patent.

Blank 2: Again, use the Math Strategy for this blank. The period (full stop) after the first sentence indicates that we are continuing with the previous idea, that the first sentence and the second sentence support each other. The first sentence states that the standard economic model has "obvious" (from blank 1) shortcomings. Thus, for the second blank, we should guess that the theorems are "bad" or "full of shortcomings."

The answer choice that most closely matches these guesses is improbable.

The Wrong Answers

Blank 1

overlooked: This choice contradicts the logic of the sentence. If the shortcomings are "overlooked," we wouldn't be "astonished" that economists have failed to respond to them.
occasional: This choice contradicts the logic of the sentence. If the shortcomings are "occasional," we wouldn't be "astonished" that economists have failed to respond to them.

Blank 2

comprehensive: This choice contradicts the logic of the sentence. We're looking for a negative word in blank 2 -- not a positive one.
pervasive: This choice has no evidence. We don't know whether the theorems are widespread (pervasive) or obscure.