Capital Stocks and Resource Maintenance Chapter Fourteen: Capital Stocks and Resource Maintenance

Capital Stocks

Figure 14.1: A Stock-Flow Diagram A stock-flow diagram shows how flows change the quantity of a stock over time. In this case, additions exceed subtractions, so the stock increases over time.

Figure 14.2: A Stock-Flow Diagram for a Checking Account In this example, flows out of the checking account exceed the flows into the account, so the checking account balance declines over time.

Natural Capital

Figure 14.3: Depletion of Nonrenewable Natural Capital Over Time The physical stock of a nonrenewable resource can only decrease over time.

Figure 14.4: Stock Changes for a Renewable Natural Resource The stock of a renewable resource can remain stable, or even increase, over time due to natural regeneration. But if managed poorly or exploited, the stock of a renewable resource can also decrease over time.