Question

40. Production of _____ goods fall during the war times
(a) Arms and ammunition
( (b) Non-durable and capital
(c) Capital and weapons
(d) Capital and consumer​

Answer 1

(d) Capital and consumer

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Answer 2

Production of Capital and Consumer goods fall during the war times.

Capital goods are considered as the goods which are used to produce the goods of durability. It consists of automobiles, aerospace, engineering and others.

• These can be considered as the physical assets, owned by the Company and by the use of it the other goods are produced in the economy.
• It involves the depriciation cost of the machines and the tools which are used by the company in a particular time period.

Consumer goods are classified as those goods which are necessary and bought by the all consumers in the country.

It is also known as final goods which can satiate the needs of the end consumers after the production is done.

During war times, the production of Capital and Consumer Goods fall due to following reasons:

• Inflation- During the war time, the production in the economy is at surplus and thus economy experiences infaltionary pressure. To control this, the production of capital and consumer goods fall.
• Production of arms and ammunition- The production of arms and ammunition during the war time is deemed necessary and thus, other goods are not produced at an increasing rate.
• Working population decline- The aftermath of war in the country is that the working population decline so the factories suffer a shortage of workers during this time and hence the production lowers.

To know more about Consumer Goods, follow

https://brainly.in/question/2593510

To know about Capital goods, follow

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