5 MOL! – You have reached Level 21 min read

Awesome! We have covered the first learning objective already.

1. Explain the problem of limited resources and unlimited wants.

Define resources with use of examples.

In the first post you learnt about resources and now understand what Land and Labour are.

The second post focused on Capital and Entrepreneurship. Did you try explaining the concept of capital depreciation to a friend?

Explain how resources are limited.

The next day we examined the idea of limited resources with you more closely than a layman would.

Then you learnt that resources receive income in the form of Wages, Rent, Interest and Profit in the Get WRIPed post.

Define wants and explain why wants are unlimited.

Next, you learnt exactly why wants are unlimited (it’s not because of greed) and how they are different from needs.

Explain the tension between limited resources and unlimited wants.

Now armed with all that knowledge, we tackled one of the most important concepts in economics.

Explain the implications of scarcity for economics.

Finally, you have understood how all these come together to motivate the study of economics.

Your next objective: Explain the concept of opportunity cost and the nature of trade-offs in the allocation of resources using production possibility curve analysis.

The answer to yesterday’s question is C — How to minimise the cost of production.

And if you have yet to subscribe to the daily 5 Minutes Only Lah!, you can read more about it here or simply subscribe below.

Till next time, dream economics.

Consistency and momentum are inseparable friends.

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