ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Capital goods are man-made, durable items that businesses use to produce goods and services. 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-2: -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-3: -Capital goods include fixed assets, such as buildings, machinery, equipment, vehicles, and tools. Capital goods are also produced for the service sector, including hair clippers used by hairstylists and coffee machines for coffee shops.

Detailed explanation-4: -On the other hand, manufacturing businesses are also more capital intensive than service businesses. An example of these items would be machinery, trucks, lifting systems, inventory transportation equipment or warehouse racks, among others.

Detailed explanation-5: -Machinery, tools, buildings, computers, or other kinds of equipment that are involved in the production of other things for sale are capital goods. The owners of the capital good can be individuals, households, corporations, or governments. Any material used to produce capital goods is also considered a capital good.