BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Answer and Explanation: Capital goods are used to manufacture other goods. This statement is TRUE.

Detailed explanation-2: -Land is all natural resources used to make goods and services (land, coal, water, wood, etc.)

Detailed explanation-3: -The correct answer is b) Their demand is derived, which means that the demand for capital goods is not direct and is instead derived from the demand for the goods and services that they help to produce. For example, a factory that produces cars will require machines, tools, and other capital goods to produce the cars.

Detailed explanation-4: -Capital goods are needed to produce consumer goods and services. Inflation increases the purchasing power of money. The availability of natural resources, labor, and capital goods are all that is needed to produce goods.