ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-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: -In most cases, capital goods require a substantial investment on behalf of the producer, and their purchase is usually referred to as a capital expense. These goods are important to businesses because they use these items to make functional goods for customers or to provide consumers with valuable services.

Detailed explanation-4: -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. Capital goods are not finished goods, instead, they are used to make finished goods.