6 6: How Well GDP Measures the Well-Being of Society

The evolution of the digital economy has reignited this old debate, as it is starting to change the way many people work. National accountants have treated government and business as the productive part of the economy and households as nonproductive, but the previously relatively clear border between home and work is eroding. More and more […]

Welfare Versus GDP: What Makes People Better Off

A long-standing criticism of reliance on GDP as the measure of economic success is that it excludes much unpaid work by households. There must be an accepted definition of what is part of the economy and measurable and what is not. Economists call this a “production boundary.” What is within that boundary and what is […]

Capital: Definition, How It’s Used, Structure, and Types in Business

Other private companies are responsible for assessing their capital thresholds, capital assets, and capital needs for corporate investment. Most of the financial capital analysis for businesses is done by closely analyzing the balance sheet. In the broadest sense, capital can be a measurement of wealth and a resource for increasing wealth. Companies have capital structures […]

Working Capital: Definition, Calculation and Analysis

5 The three are also known collectively as «primary factors of production».5 This classification originated during the classical economics period and has remained the dominant method for classification. The contents of a bank account, the proceeds of a sale of stock shares, or the proceeds of a bond issue all are examples. The proceeds of […]