5 Types Of Capital Essay
Five Kinds of Capital: Useful Concept for Sustainable Development Neva R. Goodwin September 2003 Tufts University Medford MA ABSTRACT The concept of capital has many different meanings. Sometimes it is helpful to study the relationship between different types of capital. These stocks provide various capacities of desirable outputs. The provision of these 5 types of capital is necessary for development. Financial capital facilitates economic production or control of physical capital. Natural capital is made up of the possessions and network services of the natural world. Produced capital consists of physical assets. …show more content…
are evolutionary system according to economist’s point of view but in our term we called it natural capital. So many fundamentalist are encouraging to think of our natural environment as natural capital. PRODUCED CAPITAL Earlier you have studied two kinds of capital, financial and physical capital. Now furthermore we have two kinds of physical capital which are natural and produced capital. So produced capital can be defined as the physical assets that are generated by applying human productive activities to natural capital and in result they produce goods and services. Term “capital” is just used for as reference to produced physical objects. HUMAN CAPITAL It refers to the stock of capabilities in people usually referred to as, ‘labour' in economics which yields important services in order to be a part of the economic production process. An individual's ability to work with computers can be termed as an individual's productive capability. Important aspects of human labour include a person's knowledge, education, skills, expertise, training and interpersonal skills; all these are acquired by formal education, training sessions and
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