ECONOMICS (CBSE/UGC NET)

ECONOMICS

ECONOMIC GROWTH

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which is an example of investing in capital goods by a company?
A
constructing a new factory
B
keeping old delivery trucks
C
training workers to do their jobs better
D
keeping old computers in order to save money
Explanation: 

Detailed explanation-1: -Examples include plants, office buildings, manufacturing machinery, and vehicles. Spending to purchase these assets is known as capital expenditures (CapEx). Capital goods also consist of smaller tools and supplies that companies use.

Detailed explanation-2: -Capital goods include items like buildings, machinery, and tools. Examples of consumer goods include food, appliances, clothing, and automobiles.

Detailed explanation-3: -Capital expenditure – the cost of purchasing new capital goods.

Detailed explanation-4: -Vehicles. Vehicles owned by a business are a capital good. Production Technology. Computing Technology. Electronics. Software. Power Technology. Infrastructure. Facilities. More items •31-Jul-2017

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