BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Economists include government as a factor of production. When productive resources are used for capital formation, fewer consumer goods are produced. The United States has adequate resources to satisfy all the wants of all its people. Countries with a command economy are often dictatorships.

Detailed explanation-2: -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-3: -Capital goods are man-made products used by a business to produce consumer or other capital goods. Consumer goods are products used by consumers. Capital goods include items like buildings, machinery, and tools. Examples of consumer goods include food, appliances, clothing, and automobiles.

Detailed explanation-4: -Whenever we use productive resources to make capital goods, we are automatically increasing current consumption. The greater the amount of productive resources we use to produce capital goods today, the more growth we will experience in the future.