1. Which THREE of the following are capital
goods?
A) a professional photographer's camera
B) a diesel locomotive
C) a builder's supply of bricks
D) a domestic refrigerator
E) a household's books of reference(e.g.dictionaries and atlases)
Answers
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Answer:
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.
Explanation:
a builder's supply of bricks
The most common capital goods are property, plant, and equipment (PPE), or fixed assets such as buildings, machinery and equipment, tools and vehicles. Capital goods are different from financial capital, which refers to the funds companies use to grow their businesses.
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