Capital Gains Tax is a tax paid on the sale of assets which results in a capital gain. Capital gains tax is paid on the sale of assets such as: Shares, Housing (buy to let, second homes, except MPs who didn’t have to pay capital gains tax on second homes) Artwork Capital gains Tax is …
Capital goods are fixed assets which are used in the productive process in order to produce a finished ‘consumer’ good. Capital goods are not bought for their own utility; they are bought in order to be used in the productive process. Examples of Capital Goods Factories Offices Machines Printing press Combine harvester Assembly line In …
Capital intensive refers to a productive process that requires a high percentage of investment in fixed assets (machines, capital, plant) to produce. A capital-intensive production process will have a relatively low ratio of labour inputs and will have higher labour productivity (output per worker). A capital intensive production process will tend to have a high …
Capital to Labour ratio measures the ratio of capital employed to labour employed. The capital-labour ratio (K/L) can measure the capital intensity of a firm. Typically, over time, firms tend to have a higher capital-labour ratio as they seek to gain productivity improvements from investment in capital and automating the production process. High Capital to Labour Ratio …
Definition capital widening means that the capital stock will increase at the same rate as the labour force and lead to constant labour productivity (output per worker). Capital widening involves greater investment to make use of existing technology and increase the amount of capital available. Capital deepening attempts to increase output through better technology and …
The main difference between capitalism and socialism is the extent of government intervention in the economy. A capitalist economic system is characterised by private ownership of assets and business. A capitalist economy relies on free-markets to determine, price, incomes, wealth and distribution of goods. A socialist economic system is characterised by greater government intervention to re-allocate …
A Capitalist is defined as a person who makes the majority of their income from the ownership of assets and capital. For example, a capitalist may receive dividends from shares or rent from property that he owns. In a sense, a person with a private pension can be said to be gaining income from assets …
A capitalist economic system is one characterised by free markets and the absence of government intervention in the economy. In practice a capitalist economy will need some government intervention, primarily to protect private property. (This is important to distinguish capitalism from anarchism, where there is absolutely no government present) Features of a capitalist economic system …