Capital Formation
Capital formation refers to the process of increasing the stock of capital goods in an economy over a period of time. It involves the creation, accumulation, and utilization of physical and financial capital in order to enhance productivity and promote economic growth.

Other Names for Capital Formation
The other names for capital formation are as follows:

1. Capital Output Ratio: The capital output ratio is a measure of the amount of capital required to produce a given level of output. It represents the efficiency of capital utilization in the production process. A higher capital output ratio indicates lower capital efficiency, while a lower ratio indicates higher capital efficiency. While capital output ratio is related to capital formation, it is not a synonym for it.

2. Saving: Saving refers to the portion of income that is not consumed but instead set aside for future use. It represents the source of funds for investment and capital formation. Saving can be done by individuals, businesses, and the government. When savings are channeled into productive investments, they contribute to capital formation.

3. Investments: Investments refer to the allocation of funds into assets or activities that are expected to generate income or appreciation in value. It involves the purchase of capital goods, such as machinery, buildings, and equipment, as well as financial assets like stocks and bonds. Investments are a key driver of capital formation as they increase the stock of productive assets in the economy.

4. Wealth Formation: Wealth formation refers to the accumulation of assets and financial resources over time. It includes not only physical capital but also other forms of wealth, such as financial assets, real estate, and intellectual property. Wealth formation is an outcome of capital formation, as the accumulation of productive assets leads to an increase in overall wealth in the economy.

Conclusion
Capital formation is a crucial process for promoting economic growth and development. It involves the creation, accumulation, and utilization of capital goods and financial resources. While capital output ratio, saving, investments, and wealth formation are related to capital formation, they are not synonymous with it. These terms represent different aspects of the process and contribute to the overall goal of increasing the stock of capital in an economy.