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 are needed to produce consumer goods and services. Inflation increases the purchasing power of money. The availability of natural resources, labor, and capital goods are all that is needed to produce goods.
Detailed explanation-2: -Which statement is true about capital goods? They increase the production of goods.
Detailed explanation-3: -Is there any good that you consume which was not produced by capital goods? No. Every consumer good needs a capital goods yo be made, transported, sold, etc.
Detailed explanation-4: -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.