Capital stock
Definition
Capital stock refers to all physical assets such as machinery, equipment, buildings, infrastructure that are used in the production process. It represents accumulated wealth that can be utilized for future economic activities.
Related terms
Physical capital: Refers specifically to the tangible assets used in production such as machinery and equipment.
Human capital: Represents the skills, knowledge, education, and training of individuals that contribute to economic productivity.
Depreciation: The decrease in value of physical capital over time due to wear and tear or obsolescence.
"Capital stock" appears in:
Study guides (1)
AP Macroeconomics - 3.4 Long-Run Aggregate Supply (LRAS)
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About Us
About Fiveable
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Privacy Policy
CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Cram Events
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Crisis Text Line
Help Center
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.