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For the sake of convenience, the factory owners and other industrialists classify capital as fixed and circulating capital. By “fixed” capital they mean the factory building, machinery and other goods which, once purchased, remain with them for many years, and help production. “Circulating” capital means the raw materials, lubricating oils, fuel and other goods, which, though they also help production, are used up at short intervals and therefore will be purchased anew from time to time. From the point of view of economic theory, this classification is meaningless. Sometimes it becomes difficult to know, whether something should be regarded as fixed or circulating capital.
Содержанию текста соответствует заголовок …
Production
Capital
Economic Theory
Fixed and Circulating Capital