Capital is also a means of production

Capital is also a means of production - may be saved and...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Capital is also a means of production . There are a variety of produced goods such as sugar, milk, cloth, steel, electricity etc. which may not all be capital goods. All produced goods together constitute wealth. Total wealth can be used only in one of the two ways. It can be consumed immediately for the present satisfaction of wants or part of the wealth
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: may be saved and used in further acts of production. When it is used in the second form wealth becomes capital. This makes it clear that it is not the goods themselves which are capital but it is the use of these goods that makes it capital. In this sense, capital refers to a function of goods rather than the goods per se ....
View Full Document

This note was uploaded on 11/26/2011 for the course EC ec 201 taught by Professor - during the Fall '10 term at Montgomery.

Ask a homework question - tutors are online