In economics, capital goods refer to real products that are used in the production of other products but are not incorporated into the new product that is derived from the production of the older product. They are often called fixed human-made means of production. Capital goods include factories, machinery, tools, and various buildings. They are different from raw materials which are used up in the production of goods. Economics (from the Greek Î¿Î¯ÎºÎ¿Ï [oikos], house, and Î½Î¿Î¼Î¿Ï [nomos], rule, hence household management) is a social science that studies the production, distribution, trade and consumption of goods and services. ... The means of production are physical, non-human, inputs used in production. ... material is the substance or matter from which something is or can be made, or also items needed for doing or creating something. ...
Capital goods are also different from financial capital. Capital goods are real objects owned by entities (individuals, governments, and other organizations) in order to get a positive return of some sort from production. Financial capital refers to pieces of paper (or other kinds of promises) that represent claims on these types of goods and on other sources of promised future income. Financial capital, or economic capital, is any liquid medium or mechanism that represents wealth, or other styles of capital. ...
Ludwig von Mises on the role of factors of production
Share your thoughts, questions and commentary here
Want to know more? Search encyclopedia, statistics and forums:
Press Releases |
The Wikipedia article included on this page is licensed under the
Images may be subject to relevant owners' copyright.
All other elements are (c) copyright NationMaster.com 2003-5. All Rights Reserved.
Usage implies agreement with terms, 1022, m