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CAPITAL: One of the four basic categories of resources, or factors of production. It includes the manufactured (or previously produced) resources used to manufacture or produce other things. Common examples of capital are the factories, buildings, trucks, tools, machinery, and equipment used by businesses in their productive pursuits. Capital's primary role in the economy is to improve the productivity of labor as it transforms the natural resources of land into wants-and-needs-satisfying goods.
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                           COMPENSATION OF EMPLOYEES: The official item in the National Income and Product Accounts maintained by the Bureau of Economics Analysis measuring wages earned by the household sector for supplying labor services. This is one of five official factor payments making up national income. The other four are net interest, rental income of persons, corporate profits, and proprietors' income. Compensation of employees is far and away the largest of the five factor payments, typically running about 70 percent of national income. Compensation of employees includes standard wages and salaries paid directly to employees, as well as assorted fringe benefits (health care, retirement, etc.) paid on behalf of employees to third parties. The official terms for these two components are: (1) wage and salary accruals and (2) supplements to wages and salaries. Wage and salary accruals, as might be expected is the larger of the two, coming in at around 80 percent of total compensation of employees, leaving supplements to wages and salaries at the remaining 20 percent.Compensation of employees includes more than just the typical wage payments that come to mind when the topic turns to compensating labor. This entry, of course, includes hourly wages paid to factory workers, clerical workers, retail sales clerks, farmhands, fast-food counter help, and other folks who clearly supply labor services to the production of GDP. But, this entry also includes monthly and annual wages to other folks who DO NOT immediately come to mind when the word labor is mentioned. Examples are the head of a Fortune 500 company, a professional athlete, and a popular motion picture actor. Their salaries might be measured in millions of dollars rather than thousands of dollars, but so long as they are being paid for using their physical and/or mental efforts in production, then their salaries are included in the compensation of employees entry.
Recommended Citation:COMPENSATION OF EMPLOYEES, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2019. [Accessed: January 18, 2019].
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Today, you are likely to spend a great deal of time at a dollar discount store looking to buy either a black duffle bag with velcro closures or any book written by Isaac Asimov. Be on the lookout for telephone calls from former employers.
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The earliest known use of paper currency was about 1270 in China during the rule of Kubla Khan.
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"Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover." -- Mark Twain
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AMB
Adjusted Monetary Base
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