ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Capital goods serve a critical role in the economy. When companies invest in capital goods, they expand their ability to create products and services. This allows businesses to make a profit and hire employees, and can result in economic growth for society as a whole.

Detailed explanation-2: -Capital investment occurs when businesses purchase capital goods, which are tangible assets such as buildings, machinery, equipment, vehicles, and tools. These tangible assets are then used to produce goods or services. Capital investment is a means for a company to further its business objectives.

Detailed explanation-3: -Any asset used by a business in the course of producing the product or service that it sells to customers is considered a capital good. This includes property, plant, equipment and, sometimes, natural resources.

Detailed explanation-4: -A capital good is any good used for production. Consumer goods are those used by consumers and have no future productive use. The same physical good could be either a consumer or capital good, depending on how the good is used.