: a Chapter 6: Capital Stocks and Resource Maintenance 101 1. Handout: The Major Forms of Capital Gift of nature; Sometimes owned by sometimes can be individuals or renewed. organizations, Natural ; ‘Geos, || Ones a 1. Renewable ean owns “land” in older The absolute size of | 2. Nonrenewable s economics books). | depleted resource stocks can seem to tise because of new discoveries. Made by labor using | I. Fixed—including | Usually owned by other resources. machines and —_| individuals or Nicaea ‘AdditiGud ace Called other equipment, | organizations “physical investment.” | __ factories, other (sometimes called 5 buildings and “capital goods”). Subtractions are called | infrastructure. “depreciation” (or wear and tear, or capital consumption). | 2. Inventories ‘Human capital is “Owned” by the person increased by it's embodied in; can’t experiences that an : be sold (except as part individual may be able | !- Physical human | of the individual). Hines to choose to have capital (nutrition, | rn can be eared ee (formal or informal etc.) Gay be te emodiedin People; | education) and by care | 2. Intangible ae e ey and nurturance given (education, on- - by others (parents, the-job training, other individuals of ‘experience) organizations that provide nutrition, training, etc.). Copyright © Houghton Mittin Company. All ights reserved.102 Chapter 6: Capital Stocks and Resource Maintenance Social organization Social organization may made by efforts to not be owned by figure out ways to Picoci anyone, but can reside foster communication Grganiestions in organizations. and cooperation traditions, fellow- | Technical knowledge is Social Includes application feeling sometimes monopolized of management theory |. ‘Technology under patent laws. and technology made (embodied or by engineers, using diseminodied) science > Equity finance: | Equity may be owned funds one owns | by individuals or (net worth). organizations. Results from saving | WDE mS isnot Financial from ee ae sled eet oa eeses alowithy debt aance’ (Monetary funds) _| Fevenues (financi uses of equity. | you're using money representing claims | vestment) There's an ‘owned by others. on real wealth or Depleted by spending, opportunity cost. promised payments in | out of financial assets : rae iivag off Capi . Debt finance: : borrowed funds. rather than income) Meee must pay interest on the Joan principal. Copyright © Hougkton Min Company. Al rights reserved.