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

2. Capital Stocks

3. 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.

4. 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.

5. Natural Capital

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

7. 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.