ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Capital goods are those goods that are used for further production of other commodities. They are used in the future for purpose of productivity. These goods have derived demand and helped in raising the productive capacity of the business.

Detailed explanation-2: -In economics, factors of production are the resources people use to produce goods and services; they are the building blocks of the economy. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship.

Detailed explanation-3: -Intermediate goods are products that are used in the production process to make other goods, which are ultimately sold to consumers. The intermediate goods are sold industry-to-industry for resale or to produce other products.

Detailed explanation-4: -What are inputs? Inputs are any resources used to create goods and services. Examples of inputs include labor (workers’ time), fuel, materials, buildings, and equipment.