Principles of Macroeconomics / Unit 4 MAC 0309 short lesson, about 20 seconds
Physical Capital
Captions available
The idea
Physical capital is plant, equipment and infrastructure: the produced things workers use to produce. More of it and better of it both raise productivity.
In practice
Roads, ports and power grids count alongside machines.
Where people slip
Capital wears out, so some investment each year only replaces what depreciated rather than adding to the stock.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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