11:373:101 Final: [11:373:101] - Final Exam Guide - Everything you need to know! (37 pages long)

• School: Rutgers University
• Department: Environmental and Business Economics
• Course: 11:373:101
• Professor: P.Gottlieb

Document Summary

**not all consumer goods are real capital (ex. Concepts and examples of capital, saving, and investing. Capital: real concept: long-lasting inputs to the economic system that have been produced in the past. Examples: hickman hall, robot in an automobile assembly factory. Human capital (education, skills, knowledge become long- lasting asset; society"s stock of technological knowledge) Natural/environmental capital (flood control; can"t let it: financial concept: financial assets decay) Examples: stocks, bonds, money: stock vs flow: if real capital is a stock concept, then real investing. And real saving are flow concepts that are related in some way to the creation of real capital. Investing: using resources to create real capital (creating, building, educating, etc: real concept: physical creation of real capital (take resources, real capital, labor economic system real capital) Example: machines (real capital) used to create other machines (real capital) Financial concept: paying for the resources used to create capital.