• Unit 4: Capital and Technology

    With the foundation laid in the first three units, we will now examine some of the most important economic tools humans use to increase the amount and value of our time on earth. In unit 4 we discuss the concept of capital, and the economic choice it entails: the sacrifice of present enjoyment in exchange for an uncertain chance at acquiring goods that can increase the productivity of human time, and how capital accumulation is related to time preference. We also discuss the economics of technological advancement, and how powerful ideas are.

    Completing this unit should take you approximately 3 hours.


    • Upon successful completion of this unit, you will be able to:

      • Explain the concept of capital and differentiate between lower and higher order goods.
      • Describe how consumption, time preference and originary interest influence the cost of capital.
      • Explain how technology acts as an economic tool and the role of intellectual property on technological progress.
      • Analyze whether ideas can be property.

    • 4.1: Capital, Technology, and Human Productivity Lecture

      • 4.1: Lecture Page

        The concept of capital is one of the most important concepts for a student in economics to understand. While it is not a concept that is covered extensively in mainstream courses on economics, the Austrian school gives it central importance. In this section, Dr. Saifedean offers a general conception of capital but will discuss capital in the context of capital theory in the later parts of the course. This lecture concludes with a discussion of intellectual property, a topic that will be discussed in detail. Topics covered include: Lower and higher order goods • Consumption • Time preference as constraint on capital • Originary interest • Raising productivity • Longer production processes • Human reason • Non-rival, non-scarce • Not physical • ntellectual property

    • 4.2: Capital, Technology, and Human Productivity Discussion

      • 4.2: Discussion Page
        Since you have watched the video lecture for unit 4, it's time to watch Dr. Saifedean moderate a discussion on the unit's theme by addressing questions asked by your fellow classmates. As you watch the discussion unfold, take notes to help you retain information. Make sure you watch the entire discussion seminar video, otherwise you may skip over important points. To get the best learning experience and mastery of the major concepts covered in this unit, you'll want to watch all videos in their entirety,

    • 4.3: Capital, Technology, and Human Productivity Review

      • 4.3 Review: Capital and technology Page

        This resource contains a summary of some of the key concepts discussed in unit 4. Don't skip ahead - the information on this page is easier to understand if you have watched the video lecture and discussion seminar video in their entirety. Bookmark this resource to keep it handy during studying.