Examples of capital goods in the following topics:
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- In economics, capital references non-financial assets used in the production of goods and services.
- In economics, capital (also referred to as capital goods, real capital, or capital assets) references non-financial assets used in the production of goods and services.
- It is possible for capital goods to be maintained or regenerated depending on the type of capital.
- There are certain features that determine whether a good is considered capital.
- the good can be used in the production of other goods (this makes it a factor of production),
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- In the basic production function, inputs are typically capital and labor and output is whatever good the firm produces.
- A production function relates the input of factors of production to the output of goods.
- Output may be any consumer good produced by a firm.
- In the short run, economists assume that the level of capital is fixed - firms can't sell machinery the moment it's no longer needed, nor can they build a new factory and start producing goods there immediately.
- Thus, the price of capital is the rental rate.
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- One of the main functions of financial markets is to allocate capital, matching those who have capital to those who need it.
- One of the main functions of financial markets is to allocate capital.
- Capital markets especially facilitate the raising of capital while money markets facilitate the transfer of liquidity, matching those who have capital to those who need it.
- When a company borrows from the primary capital markets, often the purpose is to invest in additional physical capital goods, which will be used to help increase its income.
- Long-term capital can come in the form of shared capital, mortgage loans, and venture capital, among other types.
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- Finished goods are the output.
- Land:which includes the site where goods are produced as well as all the minerals below and above the site;
- Capital: which are the human-made goods used in the production of other goods, such as machinery and buildings .
- The classical economists also employed the word "capital" in reference to money.
- Money, however, was not considered to be a factor of production in the sense of capital stock since it is not used to directly produce any good.
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- The marginal cost of capital is the cost needed to raise the last dollar of capital, and usually this amount increases with total capital.
- Generally we see that as more capital is raised, the marginal cost of capital rises .
- The investment in capital is logically only a good decision if the return on the capital is greater than its cost.
- The Marginal Cost of Capital is the cost of the last dollar of capital raised.
- Describe how the cost of capital influences a company's capital budget
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- Firms add capital to the point where the value of marginal product of capital is equal to the rental rate of capital.
- Capital is a factor of production, along with labor and land.
- It consists of the infrastructure and equipment used to produce goods and services.
- The value of marginal product (VMP) of capital is the marginal product of capital multiplied by price.
- Firms will increase the quantity of capital hired to the point where the value of marginal product of capital is equal to the rental rate of capital.
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- Capitalism is a system that includes private ownership of the means of production, creation of goods for profit, competitive markets, etc.
- Capitalism is generally considered by scholars to be an economic system that includes private ownership of the means of production, creation of goods or services for profit or income, the accumulation of capital, competitive markets, voluntary exchange, and wage labor.
- Economists, political economists and historians have taken different perspectives on the analysis of capitalism.
- Capitalism is generally viewed as encouraging economic growth.
- Examine the different views on capitalism (economical, political and historical) and the impact of capitalism on democracy
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- The capital account acts as a sort of miscellaneous account, measuring non-produced and non-financial assets, as well as capital transfers.
- There are two common definitions of the capital account in economics.
- Instead, the capital account acts as a sort of miscellaneous account, measuring non-produced and non-financial assets, as well as capital transfers.
- The capital account can be split into two categories: non-produced and non-financial assets, and capital transfers.
- Capital transfers include debt forgiveness, the transfer of goods and financial assets by migrants leaving or entering a country, the transfer of ownership on fixed assets, the transfer of funds received to the sale or acquisition of fixed assets, gift and inheritance taxes, death levies, and uninsured damage to fixed asset.
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- The main considerations of working capital management decisions are (1) cash flow/ liquidity and (2) profitability/return on capital.
- Working capital is the amount of capital which is readily available to an organization.
- Firm value is enhanced when, and if, the return on capital, which results from working-capital management, exceeds the cost of capital, which results from capital investment decisions as above.
- It includes buying of raw materials and selling of finished goods either in cash or on credit.
- Cash conversion cycle is a main criteria for working capital management.
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- In economics and long-run growth, worker productivity is influenced directly by fixed capital, human capital, physical capital, and technology.
- Over time, when worker productivity increases the quality and quantity of the goods and services will also increase.
- Human capital and increased worker productivity are critical because they are different from the tangible monetary capital or revenue.
- Human capital grows cumulatively over a long period of time.
- Examine the role of human capital in production and economic growth