A Note on Capital as a Concept in Principles of Economics Textbooks

Abstract

This paper examines the way in which principles ofeconomics textbooks treat the concept of capital. A number of textbooks are reviewed and are shown to exhibit consistencies and inconsistencies in the use of the word "capital'' in different contexts within the main body of textbooks and in definitions found in glossaries. Included in the paper is a discussion of the new concept of capital found in international balance of payments accounting. The general conclusions of the paper are that authors should use multiple definitions in glossaries and that they and instructors should highlight potential sources ofconfusion in the use of technical economic terms to first readers of economics (A22).