GENERAL KNOWLEDGE

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. Capital goods are not finished goods, instead, they are used to make finished goods.

Detailed explanation-2: -Key Takeaways Intermediate goods are products that are used in the production process to make other goods, which are ultimately sold to consumers. The intermediate goods are sold industry-to-industry for resale or to produce other products.

Detailed explanation-3: -a) Capital is man-made (artificial) b) It increases the productivity of resources c) Supply of capital is elastic. It can be produced in large quantity when its requirement increases. d) Capital is perishable as it can be destroyed. e) Capital is highly mobile.

Detailed explanation-4: -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.