Question

1. What are capital goods? How are they different from consumption good?​

Answer 1

Answer:

Capital goods are goods used by one business to help another business produce consumer goods. Consumer goods are used by consumers and have no future productive use. Capital goods include items like buildings, machinery, and tools. Examples of consumer goods include food, appliances, clothing, and automobiles.

Answer 2

Explanation:

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...capital goods differ from consumer goods because consumer goods satisfy consumer wants directly, while capital goods satisfy consumer goods indirectly by providing the means to produce consumer goods. ... the principle that as a production of a good increases, the opportunity costs of producing an additional unit rises.