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Lost as in it is consumed. Seeds that are eaten are turned into calories/protein/fat. If these bioresources are not used to produce more resources (thats invest
by chordalkeyboard 6y ago
Lost as in it is consumed. Seeds that are eaten are turned into calories/protein/fat. If these bioresources are not used to produce more resources (thats investment) then they are consumed and they go back into nature as heat loss or decomposed organic matter. Seeds that are planted result in another seed-producing-plant.
> If I spend $50k in cash on a car, I give up the $50k in cash in return for a $50k car. And that $50k payment go to the car company to pay employees and invest in future R&D.
If you use that car to make money (e.g. commute to a job) then it was an investment and it contributes to your income (return on investment). If you drive the car on the track exclusively as recreation, you enjoy the experience (consumption) but the car experiences mechanical wear and eventually breaks down into components.
These are economic identities, if you get a return on your investment then it was a wise investment, if you do not then it was consumption.
From the perspective of the car manufacturer the factory/raw material/etc. was an investment and the $50k you spent on the car is their return. They wouldn’t get that return if they had not invested in a factory because they preferred to consume those resources.
- pydry 6y ago>Lost as in it is consumed. Seeds that are eaten are turned into calories/protein/fat. So, transformed. A bit like how capital is transformed into capital investments.
- chordalkeyboard 6y ago> So, transformed. Yes, it is consumed when it is transformed into waste heat or other things that are not of value. It is invested when it is transformed into the means of production. > A bit like how capital is transformed into capital investments. if a thing of value is transformed into capital investment, then that is investment and therefore not consumption. If it is not transformed into the means of producing more things of value, then it can be saved (not consumed) or consumed (consumption).