ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Capital goods are mostly fixed assets that are purchased by the producer in order to produce consumer goods. Examples: Buildings, equipment, machinery, furniture, and more.

Detailed explanation-2: -Tools, machinery, buildings, vehicles, computers, and construction equipment are types of capital goods. Capital goods are one of the four leading economic factors.

Detailed explanation-3: -The correct answer is b) Their demand is derived, which means that the demand for capital goods is not direct and is instead derived from the demand for the goods and services that they help to produce. For example, a factory that produces cars will require machines, tools, and other capital goods to produce the cars.

Detailed explanation-4: -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. Capital resources is a higher-level concept, defined slightly differently by different scholars.