CBSE eBooks CBSE Guess > eBooks > Class XII > Economics
Basic Concepts of Macroeconomics Basic Concepts of Macroeconomics Basic Concepts :- Good- Any physical object, natural or man-made, or service rendered, that could command a price in the market. Consumption goods- Goods purchased or owned for satisfaction of wants. Eg. Food, clothes, vehicle,etc.
Final consumers are-
Capital goods:- Goods capable of being used for producing other goods for generating income. Eg. Buildings, machines , etc.
A car purchased by family is a consumer good but when purchased by a factory is a capital good. All capital goods are producer goods, but all producer goods are not capital goods # Capital vs Investment- Fixed invst.- Invest. In fixed capital. It is also called fixed capital formation( as it increases stock Fixed invst. = St. of fixed assets at the end of a/cing year – St. of fixed assets at the beginning of a/cing year. Stock invst.- ( Inventory invst.) Invest.in stock of raw materials, semi-finished goods and finished Significance if Inventory Invst.- It is maintained to cope with the uncertainties of the mkt. Gross vs Net invst. Total addition of capital goods to the existing stock of capital during a time period is the gross invst. But the net availability of the capital goods after taking into consideration the depreciation is the net invst.
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