Capital (economics)

capitalcapital flowsinvestment capitalforeign capitalprivate capitalcapital floweconomic capitalcapital stockcapital theorycapital goods
In economics, capital consists of assets that can enhance one's power to perform economically useful work.wikipedia
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Physical capital

capitalcapital stockproductive assets
At any given moment in time, total physical capital may be referred to as the capital stock (which is not to be confused with the capital stock of a business entity).
In economics, physical capital or just capital is a factor of production (or input into the process of production), consisting of machinery, buildings, computers,etc.Its is divided into 2 categories-working and fixed capital.The production function takes the general form Y=f(K, L, N), where Y is the amount of output produced, K is the amount of capital stock used, L is the amount of labor used, and N is the amount of natural resources used.

Capitalism

capitalistcapitalistscapitalistic
For Marx capital only exists within the process of the economic circuit (represented by M-C-M') —it is wealth that grows out of the process of circulation itself, and for Marx it formed the basis of the economic system of capitalism.
The term "capitalist", meaning an owner of capital, appears earlier than the term "capitalism" and it dates back to the mid-17th century.

Capital asset

capital assetscapitalcapital cost
Capital goods, real capital, or capital assets are already-produced, durable goods or any non-financial asset that is used in production of goods or services.

Financial capital

capitalfinance capitalfinancial
In more contemporary schools of economics, this form of capital is generally referred to as "financial capital" and is distinguished from "capital goods".
Financial capital or just capital/equity in finance, accounting and economics, is internal retained earnings generated by the entity or funds provided by lenders (and investors) to businesses to purchase real capital equipment or services for producing new goods/services.

Labour economics

laborlabor economicslabor market
Classical and neoclassical economics regard capital as one of the factors of production (alongside the other factors: land and labour).
It is conventionally contrasted with such other factors of production as land and capital.

Classical economics

classical economistsclassicalclassical economist
Classical and neoclassical economics regard capital as one of the factors of production (alongside the other factors: land and labour).
This income was in turn based on the labor of its inhabitants, organized efficiently by the division of labour and the use of accumulated capital, which became one of classical economics' central concepts.

Instructional capital

This includes organization, entrepreneurship, knowledge, goodwill, or management (which some characterize as talent, social capital or instructional capital).
Instructional capital is a term used in educational administration after the 1960s, to reflect capital resulting from investment in producing learning materials.

Land (economics)

landland economicsland economy
Classical and neoclassical economics regard capital as one of the factors of production (alongside the other factors: land and labour).
Land is considered one of the three factors of production (also sometimes called the three producer goods) along with capital, and labor.

Factors of production

factor of productionresourcesinputs
Classical and neoclassical economics regard capital as one of the factors of production (alongside the other factors: land and labour).

Stock and flow

stockflowflow variable
There was the further clarification that capital is a stock.
In contrast, the U.S. nominal capital stock is the total value, in dollars, of equipment, buildings, and other real productive assets in the U.S. economy, and has units of dollars.

Entrepreneurship

entrepreneurFounderentrepreneurs
This includes organization, entrepreneurship, knowledge, goodwill, or management (which some characterize as talent, social capital or instructional capital).
Many "high value" entrepreneurial ventures seek venture capital or angel funding (seed money) to raise capital for building and expanding the business.

Constant capital

variable capital
In Marxian theory, variable capital refers to a capitalist's investment in labor-power, seen as the only source of surplus-value.
It refers to one of the forms of capital invested in production, which contrasts with variable capital (v).

Natural capital

naturalNatural capital (N)natural capitals
Separate literatures have developed to describe both natural capital and social capital.
It is an extension of the economic notion of capital (resources which enable the production of more resources) to goods and services provided by the natural environment.

Production function

aggregate production functiontechnologyProduction
Capital is an input in the production function.
The debate began in 1953 when Joan Robinson criticized the way the factor input capital was measured and how the notion of factor proportions had distracted economists.

Human capital

human capital theorycapitalhuman
For example, investment in skills and education can be viewed as building up human capital or knowledge capital, and investments in intellectual property can be viewed as building up intellectual capital.
In this view, human capital is similar to "physical means of production", e.g., factories and machines: one can invest in human capital (via education, training, medical treatment) and one's outputs depend partly on the rate of return on the human capital one owns.

Individual capital

individualone of several bodily forms ofskills
However, this increasingly distinguishes means of capital investment, and collection of potential rewards for patent, copyright (creative or individual capital), and trademark (social trust or social capital) instruments.
Individual capital, the economic view of talent, comprises inalienable or personal traits of persons, tied to their bodies and available only through their own free will, such as skill, creativity, enterprise, courage, capacity for moral example, non-communicable wisdom, invention or empathy, non-transferable personal trust and leadership.

Commodity (Marxism)

commoditycommoditiesM-C-M
For Marx capital only exists within the process of the economic circuit (represented by M-C-M') —it is wealth that grows out of the process of circulation itself, and for Marx it formed the basis of the economic system of capitalism.
In Marx's analysis of the capitalist mode of production, commodity sales increase the amount of exchange-value in the possession of the owners of capital, i.e., they yield profit and thus augment their capital (capital accumulation).

Social capital

goodwillsocialcapital
This includes organization, entrepreneurship, knowledge, goodwill, or management (which some characterize as talent, social capital or instructional capital). Separate literatures have developed to describe both natural capital and social capital. However, this increasingly distinguishes means of capital investment, and collection of potential rewards for patent, copyright (creative or individual capital), and trademark (social trust or social capital) instruments.
In The Forms of Capital Pierre Bourdieu distinguishes between three forms of capital: economic capital, cultural capital and social capital.

Economics

economiceconomisteconomic theory
In economics, capital consists of assets that can enhance one's power to perform economically useful work.
Inputs used in the production process include such primary factors of production as labour services, capital (durable produced goods used in production, such as an existing factory), and land (including natural resources).

Neoclassical economics

neoclassicalneoclassical economistsneo-classical economics
Classical and neoclassical economics regard capital as one of the factors of production (alongside the other factors: land and labour).
This was explored in a major debate in the 1960s—the "Cambridge capital controversy"—about the validity of neoclassical economics, with an emphasis on economic growth, capital, aggregate theory, and the marginal productivity theory of distribution.

Karl Marx

MarxMarx, KarlMarxist
Karl Marx adds a distinction that is often confused with David Ricardo's.
His work in economics laid the basis for much of the current understanding of labour and its relation to capital, and subsequent economic thought.

Henry George

GeorgistGeorgeHenry George O'Shea
Economist Henry George argued that financial instruments like stocks, bonds, mortgages, promissory notes, or other certificates for transferring wealth is not really capital, because "Their economic value merely represents the power of one class to appropriate the earnings of another" and "their increase or decrease does not affect the sum of wealth in the community".
The United Labor Party was soon weakened by internal divisions: the management was essentially Georgist, but as a party of organized labor it also included some Marxist members who did not want to distinguish between land and capital, many Catholic members who were discouraged by the excommunication of Father Edward McGlynn, and many who disagreed with George's free trade policy.

Capital accumulation

accumulation of capitalaccumulationLaw of accumulation
Investment or capital accumulation, in classical economic theory, is the production of increased capital.
Capital accumulation refers ordinarily to:

Capital intensity

capital intensivecapital-intensivecapital
Austrian School economist Eugen Boehm von Bawerk maintained that capital intensity was measured by the roundaboutness of production processes.
Capital intensity is the amount of fixed or real capital present in relation to other factors of production, especially labor.

Labor theory of value

labour theory of valuevaluelabor theory
It is called "variable" since the amount of value it can produce varies from the amount it consumes, i.e., it creates new value.
The standard formulation is that prices normally include a level of income for "capital" and "land".