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: -Answer and Explanation: The buildings, structures, machinery, and tools used in the production process are called capital goods.

Detailed explanation-3: -The tools and machines that are used in production over many years are known as fixed capital.

Detailed explanation-4: -Capital resources include money to start a new business, tools, buildings, machinery, and any other goods people make to produce goods and provide services.

Detailed explanation-5: -The third factor of production is capital. 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.