ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In sum, because money is “the” good used in exchange, and exchange transforms goods from higher to lower order, and production is action which transforms goods from higher to lower order, money, too, is a producers’ good; i.e., a capital good.

Detailed explanation-2: -Answer and Explanation: Capital goods are used to manufacture other goods. This statement is TRUE.

Detailed explanation-3: -Tools, machinery, buildings, vehicles, and computers are examples of capital goods. Some items can be both capital goods and consumer goods depending on how they are used.

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.