Ch12_factor_markets

Ch12_factor_markets - Chapter 12 Capital and land:...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Chapter 12 Capital and land: completing the analysis of factor markets David Begg, Stanley Fischer and Rudiger Dornbusch, Economics , 7th Edition, McGraw-Hill, 2003 14.2 Capital and land Physical capital the stock of produced goods which contributes to the production of goods and services Land the factor of production which nature supplies Together capital and land make up the tangible wealth of a country. 14.3 Investment Capital depreciates over time becoming less productive and less valuable Gross investment the production of new capital goods and the improvement of existing capital goods Net investment gross investment minus the depreciation of the existing capital stock 14.4 Stocks and flows A stock the quantity of an asset at a point in time the asset price is the sum for which the stock can be bought outright A flow the stream of services that an asset provides during a period the rental rate is the cost of using capital services 14.5 Interest and present value...
View Full Document

Page1 / 13

Ch12_factor_markets - Chapter 12 Capital and land:...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online