Knowra Capital (economics) Capital (economics) Capital is wealth or assets used to produce goods and services, including funds, equipment, and infrastructure. It generates productive capacity and may take physical, financial, or intangible forms.
Means of production : The physical and organizational resources used to produce goods and services. Capital goods are part of the productive resources captured by this broader concept.
Capital accumulation : The increase in an economy’s stock of productive assets through investment. It describes how today’s investment adds to the capital stock.
Money : A medium of exchange, unit of account, and store of value. Money can finance capital, but holding money alone does not necessarily create productive capacity.
Economic growth : An increase in an economy’s production of goods and services over time. Capital accumulation can raise the economy’s capacity to produce.
Cambridge capital controversy : A debate over whether aggregate capital can be measured independently of prices and income distribution. It challenged treating capital as a single measurable quantity in production models.
Fixed capital : Long-lasting productive assets, such as buildings, machinery, and infrastructure. It names the durable equipment and structures included in physical capital.
Investment (macroeconomics) : Spending on newly produced capital goods, inventories, or structures. Investment is the flow that creates or expands productive capital.
Wealth : The total value of assets owned by a person, institution, or society, net of liabilities. Capital is the productive portion of wealth, not every asset a holder owns.
Marginal product of capital : The additional output generated by one more unit of capital, holding other inputs constant. It links an extra capital investment to its expected contribution to production.
Capital theory : Economic theories explaining capital’s measurement, role in production, accumulation, and distribution. The controversy sits within wider disagreements about what capital is and how it works.
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