ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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skills and education that countries help you
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a person who takes risk
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goods making more and better goods and services
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a gift of nature
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Detailed explanation-1: -Capital goods are man-made, durable items used by businesses to produce goods and services. They include tools, buildings, vehicles, machinery, and equipment.
Detailed explanation-2: -Capital goods are the assets used by businesses in the course of producing their products and services, and can include buildings, machinery, tools and equipment.
Detailed explanation-3: -Capital goods are called tangible assets because they are physical in nature. Capital goods are assets that companies use to produce products that other businesses can use to create finished goods.
Detailed explanation-4: -Importance of Capital Goods in the Economy Capital goods play a vital role in increasing the production of goods in the long term, or in other words, it increases the production capacity of goods and services. However, if there is an excess of capital goods, then it can lead to a reduction of consumption.
Detailed explanation-5: -Key Differences The purpose of capital goods is to help produce other products. They are meant to be used for production, while consumer goods are bought for personal and final consumption. Businesses, companies, and manufacturers buy capital goods.