GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Capital goods directly satisfy human wants. The availability of natural resources, labor and capital goods are all that is need to produce goods. Economists include government as a factor of production. When productive resources are used for capital formation, fewer consumer goods are produced.
Detailed explanation-2: -Human-made resources (buildings machinery and equipment) used to produce goods and services; goods which do not directly satisfy human wants; also called capital goods.
Detailed explanation-3: -Consumer goods satisfy human wants directly.
Detailed explanation-4: -This want-satisfying quality in a good is called Utility. Hence utility means the power to satisfy a human want. Was this answer helpful?
Detailed explanation-5: -The correct answer is b) Their demand is derived, which means that the demand for capital goods is not direct and is instead derived from the demand for the goods and services that they help to produce. For example, a factory that produces cars will require machines, tools, and other capital goods to produce the cars.