|
OUTPUT: A generic term for a tangible good or an intangible service that is the end result of the production/resource transformation process. This notion of output, which also goes by the alias product, usually surfaces in the context of analyzing the short-run production of a firm. The short-run relation between a variable input and output is of particular interest because it reveals the law of diminishing marginal returns. This law indicates that additional quantities of a variable input, when added to a fixed input, have decreasing marginal products, or marginal returns.
Visit the GLOSS*arama
|
|

|
|
                           FIXED INVESTMENT: Capital investment expenditures for factories, machinery, tools, and buildings. This is one of two main categories of gross private domestic investment included in the National Income and Product Accounts maintained by the Bureau of Economic Analysis. The other category is change in private inventories. This category is generally about 95 to 97 percent of gross private domestic investment and includes the capital goods that best reflect what most people consider capital investment. Fixed investment is expenditures made by the business sector',500,400)">business sector for the factories and equipment used as productive resources. Business expenditures for fixed investment are not only critical for expanding the economy's long-run production capabilities, they also play a key role in short-run business cycles. Expansions see more fixed investment and contractions see less.Fixed investment is divided into two major categories: nonresidential and residential. Each of these subcategories is then further divided into structures and producers' durable equipment. - The nonresidential category is just under 70 percent of gross private domestic investment and just over 70 percent of fixed investment. This subcategory includes structures (buildings, pipelines, oil wells) and producers' durable equipment (computers, machinery, vehicles). Structures are about one-fourth of nonresidential fixed investment and producers' durable equipment is about three-fourths.
- The residential category primarily includes houses and apartments, and comes in at just under 30 percent of both fixed investment and gross private domestic investment. Like nonresidential fixed investment, residential fixed investment is divided into structures and producers' durable equipment. Structures are separated into single family (houses) and multifamily (apartments).
Of some importance, single family structures can be owned by either a business or an individual. In other words, the production of an owner-occupied house is included as gross private domestic investment in the National Income and Product Accounts. This is the only notable purchase made by the household sector that is not included in personal consumption expenditures. Structures are about 98 percent of this residential category and producers' durable equipment is the remaining 2 percent.
 Recommended Citation:FIXED INVESTMENT, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2023. [Accessed: January 31, 2023]. Check Out These Related Terms... | | | | | | | | Or For A Little Background... | | | | | | | | | | | | And For Further Study... | | | | | | | | | | | | | | | | Related Websites (Will Open in New Window)... | | |
Search Again?
Back to the WEB*pedia
|


|
|
BLACK DISMALAPOD [What's This?]
Today, you are likely to spend a great deal of time searching for a specialty store wanting to buy either a lazy Susan for you dining room table or a set of serrated steak knives, with durable plastic handles. Be on the lookout for empty parking spaces that appear to be near the entrance to a store. Your Complete Scope
This isn't me! What am I?
|
|
Only 1% of the U.S. population paid income taxes when the income tax was established in 1914.
|
|
"To understand a man, you must know his memories. The same is true of a nation." -- Anthony Quayle, Actor
|
|
FV Face Value
|
|
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.
User Feedback
|

|