PhysicalCapital.pdf - ECON 6351 Dr Adamchik PHYSICAL CAPITAL In general physical capital refers to any non-human asset made by humans and then used in

PhysicalCapital.pdf - ECON 6351 Dr Adamchik PHYSICAL...

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ECON 6351 Dr. Adamchik PHYSICAL CAPITAL In general physical capital refers to any non-human asset made by humans and then used in production. Capital has a number of related meanings in economics, finance and accounting. Capital in finance and accounting In finance and accounting, capital generally refers to financial wealth, especially that used to start or maintain a business. Initially, it is assumed here that other styles of capital, e.g. physical capital, can be acquired with money or financial capital, so there is little need here for any further analysis of the latter. So below, the word "capital" is short-hand for "real capital" or "capital goods" or means of production. Also to be ignored will be the problems of aggregating capital and the capital controversy. Capital in classical economic theory In classical economics, capital is one of three factors of production, the others being land and labor. Goods with the following features are capital: It can be used in the production of other goods (this is what makes it a factor of production).
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  • Fall '14
  • CHEN
  • Economics, Physical Capital, general physical capital

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