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Money is not a resource. Resources need to be productive. They have to be used to make something else, and money can’t do that. Money itself, cannot produce anything.

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Economic capital is anything that is manufactured in order to be used in the production of goods and services. More simply, capital is machinery and equipment. This includes factory machinery, but also the factory itself, and computers, furnishings, books, roads, phone lines, etc.

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In order to solve the economic problem of scarcity, we would probably need more resources. For example, if we only had more resources we could produce more goods and services and satisfy more of our wants. This will reduce scarcity and give us more satisfaction (more good and services). All societies try to achieve economic growth. A second way for a society to handle scarcity is to reduce its wants.