Measures of Capital

Measures of Capital - Measures of Capital ,itis...

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Measures of Capital While labor is measured in terms of the number of workers hired or the number of hours worked, it is  difficult to measure  capital  in terms of physical units because there are so many different types of  capital goods. Capital goods, therefore, are simply measured in terms of their  market  or  dollar  value.   Capital stock.  The market value of capital goods at a  given point  in  time , for example, at the end of  a year, is referred to as the  capital stock.  A firm's capital stock is the market value of its factory,  equipment, and other capital goods at a given point in time. A household's capital stock is the market  value of its residential structures, human capital, and other capital goods at a given point in time.  Firms' and households' capital stocks will vary over time due to  investment  and  depreciation.   Investment. Investment
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This note was uploaded on 11/19/2011 for the course ECO 1310 taught by Professor Staff during the Fall '10 term at Texas State.

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