ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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: -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-3: -Capital goods play a vital role in increasing the production of goods in the long term, or in other words, it increases the production capacity of goods and services. However, if there is an excess of capital goods, then it can lead to a reduction of consumption.

Detailed explanation-4: -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.