Capital investment
What Capital investment means in Economics A-Level, as defined for AQA.
Definitions of Capital investment
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Reference: AQA
Investment in human capital, such as staff training, enhances worker productivity, while investment in non-human capital, like automated machinery, lowers unit costs.
Spending by firms on advanced machinery directly expands the economy's productive capacity.
Topics that use Capital investment
- Market structure, static efficiency, dynamic efficiency (AQA A-Level)
- Supply-side policies (AQA A-Level)
Related terms
- Allocative efficiency
- Collusion
- Conduct
- Dynamic efficiency
- Economic incentives
- Firm performance
- Free market supply-side policies
- Human capital
Using Capital investment in the exam
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