Why do we say capital is scarce

Question

Question

Answer 1

Answer #1

capital is called to be scarce because:

It has limited availability
Users in economy have higher appetite for new projects and hence new capital, however capital is limited
Not all the projects desired in the economy can be done all the time
Even if capital is arranged to undertake all the projects, users will come up with new requirements and hence new projects requiring capital
So capital is always scarce.

Answer 2

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