Similarly, while financial economists use the word "capital" to refer to funds used by entrepreneurs and businesses to buy what they need to make their products or to provide their services, macroeconomists and microeconomists use the term capital to mean productive equipment, buildings or … A document that promises to pay specified sums of money on specified dates and is a debt to the issuer is called. Shares of stock issued by businesses. Before exactly defining the ‘Capital’, we shall examine some of the definitions given by different economists: “Capital consists of all those goods, existing at present time which can be used in anyway, so as to satisfy wants during the subsequent years”. Economists use the term human capital to describe the present value of future labor income. a bond _____increases the quantity of capital and____ decreases the quantity of capital. is money the firm raises from selling stock. as economists use the term, depreciation is a) using some of your savings to buy a car b) a GM shareholder selling some of her stock c) an increase in sales decreasing a firm's inventories d) a tax accountant's knowledge of the tax code becoming outdated as new tax laws are passed Question 3 2 pts Capital, as economists use the term, refers to Final goods that are used to produce other goods and services, The costs of operating a business. Question: Capital, As Economists Use The Term, A. Capital, as economists use the term, is the money the fir m spends to hire resources. Is Money The Firm Raises From Selling Stock. Physical capital is one of the three main factors of production in economic theory. B. Present value, as it applies to human capital, is today's value of future income, discounted by an assumed interest rate (discount rate). The cash needed to start a new business. "Capital" in Economics . Capital is one of the three components of wealth … what a person owns. Is The Money The Firm Spends To Hire Resources. Capital has a number of related meanings in economics, finance and accounting.. In economics, capital consists of human-created assets that can enhance one's power to perform economically useful work. refers to the process by which resources are transformed into useful forms. investment; depreciation. Labor income is the income earned from labor; e.g., job income or salary. Definitions of Capital:. His view of capital was specific. 1) Economists use the term capital to describe that factor of production that includes human-made resources such as factories, buildings, machinery and tools. 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