ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Capital goods include buildings, machinery, equipment, vehicles, and tools.

Detailed explanation-2: -Economists define four factors of production: land, labor, capital and entrepreneurship. These can be considered the building blocks of an economy. How these factors are combined determines the success or failure of the outcome.

Detailed explanation-3: -The third factor of production is capital. Think of capital as the machinery, tools and buildings humans use to produce goods and services.

Detailed explanation-4: -Capital as a Factor of Production For example, a company that purchases a factory to produce goods or a truck that is purchased to do construction are considered to be capital goods. Other examples of capital goods include computers, machines, properties, equipment, and commercial buildings.

Detailed explanation-5: -Economists traditionally divide the factors of production into four categories: land, labor, capital, and entrepreneurship. Land refers to natural resources, labor refers to work effort, and capital is anything made that is used to make something else.