ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What Are Capital Goods? Capital goods are physical assets that a company uses in the production process to manufacture products and services that consumers will later use. Capital goods include buildings, machinery, equipment, vehicles, and tools.

Detailed explanation-2: -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-3: -Capital goods are assets used in a business’s production process to create a consumable product or provide a service. Capital goods are important because, without them, businesses wouldn’t be able to function.

Detailed explanation-4: -Capital is a factor of production that has been produced for use in the production of other goods and services. Office buildings, machinery, and tools are examples of capital. Natural resources are the resources of nature that can be used for the production of goods and services.