ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Rising trade and sweeping technological improvements have led to more efficient production of capital goods. This has helped countries around the world raise real investment and improve living standards.

Detailed explanation-2: -Examples include plants, office buildings, manufacturing machinery, and vehicles. Spending to purchase these assets is known as capital expenditures (CapEx).

Detailed explanation-3: -Capital Goods-including electrical equipment, machinery, construction and engineering technology-along with raw Materials-from chemicals, construction supplies, and packaging to metals, paper, and forest products-are necessary for virtually every business to meet consumer demands.

Detailed explanation-4: -What are some examples of capital as a factor of production? Think of capital as the machinery, tools and buildings humans use to produce goods and services. Some common examples of capital include hammers, forklifts, conveyer belts, computers, and delivery vans.