Capital, as economists use the term, is the money the fir m spends to hire resources. 1) Economists use the term capital to describe that factor of production that includes human-made resources such as factories, buildings, machinery and tools. Is The Money The Firm Spends To Hire Resources. C. Refers To The Process By Which Resources Are Transformed Into Useful Forms. 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stock c) an increase in sales decreasing a firm's inventories d) a tax accountant's knowledge of the tax code becoming outdated as new tax laws are passed In finance and accounting, capital generally refers to financial wealth, especially that used to start or maintain a business.. Capital has a number of related meanings in economics, finance and accounting.. a bond _____increases the quantity of capital and____ decreases the quantity of capital. is money the firm raises from selling stock. The issue becomes even more pressing once the changing pattern of capital in advanced economies is taken into account. refers to the process by which resources are transformed into useful forms. investment; depreciation. financial capital is use to help finance. Capital is one of the three components of wealth … 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 … Economists use the term wealth to mean. Classical economic theory begins for all practical purposes with the writings of Adam Smith (1723-1790), especially Smith's Wealth of Nations. A document that promises to pay specified sums of money on specified dates and is a debt to the issuer is called. "Capital" in Economics . In economics, capital consists of human-created assets that can enhance one's power to perform economically useful work. B. The cash needed to start a new business. what a person owns. Shares of stock issued by businesses. Present value, as it applies to human capital, is today's value of future income, discounted by an assumed interest rate (discount rate). Labor income is the income earned from labor; e.g., job income or salary. Economists use the term human capital to describe the present value of future labor income. Question: Capital, As Economists Use The Term, A. Definitions of Capital:. 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”. This alone constitutes sufficient grounds for economists to review their theoretical treatment of intangibles. 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