Capital (economics)  

From The Art and Popular Culture Encyclopedia

Jump to: navigation, search

Related e

Google
Wikipedia
Wiktionary
Wiki Commons
Wikiquote
Wikisource
YouTube
Shop


Featured:
Train wreck at Montparnasse (October 22, 1895) by Studio Lévy and Sons.
Enlarge
Train wreck at Montparnasse (October 22, 1895) by Studio Lévy and Sons.

In neoclassical economics, capital, capital goods, or real capital are the factor of production, used to create goods or services, that is not itself significantly consumed (though it may depreciate) in the production process. Capital goods may be acquired with money or financial capital. At any moment in time, total physical capital may be referred to as the capital stock, a usage different from the same term applied to a business entity. In a fundamental sense, capital consists of anything that can enhance a person's power to perform economically useful work - a stone or an arrow is capital for a caveman who can use it as a hunting instrument, and roads are capital for inhabitants of a city. As such, capital is an input in the production function.

In classical political economy and Marxian economics, capital is money which is used to buy something only in order to sell it again, and thus capital only exists within the process of economic exchange - it is wealth that grows out of the process of circulation itself and forms the basis of the economic system of capitalism.

See also




Unless indicated otherwise, the text in this article is either based on Wikipedia article "Capital (economics)" or another language Wikipedia page thereof used under the terms of the GNU Free Documentation License; or on original research by Jahsonic and friends. See Art and Popular Culture's copyright notice.

Personal tools