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Capital is stuff used to make things, like land, equipment, and supplies. Labor is people working. Return on capital measures how much money is made from investing in capital. The video shows how capital has changed over time in the U.S., like land becoming less important.
- Labor is often considered capital, but it's a fairly special type of capital. Labor is special because it can be used for anything, which is a bit...
- This is a great question, and is fundamental to understanding how potentially biased and arbitrary it is to sum up the value of all the capital in...
- Historically the return on capital investment has been fairly steady over long periods. The book _Stocks for the Long Run_ covers this at length. S...
- I think they mean the capital costs 4-5 times of the annual return.
- Capital goods are things of value which can used for the creation of other capital goods, or for the creation of consumer goods. Labor is a special...
- Yes, those are all frequently referred to as capital, at least informally, however money is radically different. Money is not economic capital - mo...
- Can you have more money in the bank than you earn in a year? Sure you can. So there is also no reason we cannot have more capital in the country th...
- 1. Capital is not a synonym of Wealth. They are different concepts that do overlap, however. "Capital" basically consists of what (land, equipment,...
- Government Spending. How much and in what direction the government spends. For example, cronyismwhereby government spending is intended to enrich an elite.
- Government Deficits & Debt. A deficit is spending that exceeds government revenues. Government debt is the total debt obligations that a government has accumulated, often due to many decades of deficits with interest.
- Government Interest Expense. The cost to service interest on government debt. This can consume a government's resources or can effectively spiral out of control where there is a very large debt relative to the productive capacity of a nation.
- Government Entitlements. The commitments a government has made for future spending to persons or units of the government. For example, social security, medical coverage and unemployment insurance programs.
Nov 20, 2020 · The main issues are: What to produce? How to produce? For whom to produce? Examples of economic problems include. How to deal with external costs/pollution, e.g. pollution from production. How to redistribute income to reduce poverty, without causing loss of economic incentives.
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THE BASIC ECONOMIC PROBLEM. The nature of the economic problem. Learning summary. By the end of this chapter, you should understand: what is meant by wants and how these differ from needs. why resources are scarce and why this can explain the so-called ‘economic problem’. the difference between economic goods and free goods. 1.1 Needs and wants.
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In economics, capital goods or capital are "those durable produced goods that are in turn used as productive inputs for further production" of goods and services. [1] A typical example is the machinery used in a factory. At the macroeconomic level, "the nation's capital stock includes buildings, equipment, software, and inventories during a ...
Dec 8, 2023 · Find out what economists mean by physical capital, how it contributes to the productivity of labor, and why it is a crucial element in economic activity.
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May 5, 2014 · Although capital plays a central role in economic theory and in the world, many economists have historically given it insufficient attention. Even economist Piketty’s bestselling book explicitly devoted to capital still relies on a very simplistic conception of capital as a single aggregate.
