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N.G. Mankiw definition from the book Economics: Capital is the equipment and structures used to produce goods and services. Physical capital consists of man-made goods (or input into the process of production) that assist in the production process. Cash, real estate, equipment, and inventory are examples of physical capital. [1]
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 ...
It refers to machines, roads, factories, schools, infrastructure, and office buildings which humans have produced to create goods and services. Fixed capital — this includes machinery, factories, equipment, new technology, buildings, computers, and other goods that are designed to increase the productive potential of the economy for future years.
In political philosophy, the means of production refers to the generally necessary assets and resources that enable a society to engage in production. [1] While the exact resources encompassed in the term may vary, it is widely agreed to include the classical factors of production (land, labour, and capital) as well as the general infrastructure and capital goods necessary to reproduce stable ...
In macroeconomics, investment "consists of the additions to the nation's capital stock of buildings, equipment, software, and inventories during a year" [1] or, alternatively, investment spending — "spending on productive physical capital such as machinery and construction of buildings, and on changes to inventories — as part of total spending" on goods and services per year.
The faster the turnover of constant capital (i.e., the shorter the turnover time), other things being equal, the higher the rate of profit. The concept of "constant capital" is closely related to the concept of "real capital" which is used by Marx to distinguish physical capital goods from fictitious capital.
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In economics, net investment is spending which increases the availability of fixed capital goods or means of production and goods inventories.It is the total spending on newly produced physical capital (fixed investment) and on inventories (inventory investment)—that is, gross investment—minus replacement investment, which simply replaces depreciated capital goods.