Tag: some basic concepts of macroeconomics

A capitalist economy is characterized by private property, profit motive, and consumer sovereignty. Social justice is typically a goal of socialist or mixed economies, not a defining feature of pure capitalism.

Depreciation is the monetary value of the wear and tear of capital assets, such as machinery and equipment, over their useful life.

Conspicuous consumption refers to the purchase of goods and services for the specific purpose of displaying one's wealth and social status.

A refrigerator in a chemist's shop is used as a capital good to store medicines for business purposes, making it an intermediate good in the context of the shop's operations.