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In economics, capital goods or capital are "those durable produced goods that are in turn used as productive inputs for further production" of goods and services. [1] A typical example is the machinery used in a factory. At the macroeconomic level, "the nation's capital stock includes buildings, equipment, software, and inventories during a ...
Michel De Vroey (1999). "J. R. Hicks on Equilibrium and Disequilibrium: Value and Capital Revisited," History of Economics Review, 29(1), pp. 31–44. Meier Kohn (1994) "Value and Exchange," Cato Journal, 24(3). pp. 303–317 on Value and Capital vis-á-vis Paul A. Samuelson (1947), Foundations of Economic Analysis. Lionel W. McKenzie and ...
In contrast, the TSSI is a "single-system" interpretation since it holds that, in Marx's theory, (a) prices of outputs depend in the aggregate on the so-called "value rate of profit" (the ratio of surplus-value to capital invested), while (b) businesses' investments of capital value, and thus the values of the outputs produced, depend partly on ...
Capital was understood by Marx to be expanding value, that is, in other terms, as a sum of capital, usually expressed in money, that is transformed through human labor into a larger value and extracted as profits. Here, capital is defined essentially as economic or commercial asset value that is used by capitalists to obtain additional value ...
To express this contradiction in the most general terms, it consists in the fact that the capitalist mode of production tends towards an absolute development of the productive forces irrespective of value and the surplus value this contains, and even irrespective of the social relations within which capitalist production takes place; while on ...
In general, capitalism as an economic system and mode of production can be summarized by the following: Capital accumulation : production for profit and accumulation as the implicit purpose of all or most of production, constriction or elimination of production formerly carried out on a common social or private household basis.
However, Marx does generally assume that labour will accomplish the valorisation of capital. An example of variable capital would be as follows: a worker is hired for $100 and uses $1000 of materials and components to create a product which is sold for $1300. This would be $1000 constant capital plus $100 variable capital plus $200 surplus value.
In contrast, the 'value composition of capital' is the ratio between the value of the elements of constant capital involved in production and the value of the labor. Marx found that the special concept of 'organic composition of capital' was sometimes useful in analysis, since it assumes that the relative values of all the elements of capital ...