ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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.

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 needed to produce consumer goods and services. Inflation increases the purchasing power of money. The availability of natural resources, labor, and capital goods are all that is needed to produce goods.