Question

7. All capital goods are producer goods. Why? ​

Answer 1

Answer:

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Explanation:

Capital goods include fixed assets, such as buildings, machinery, equipment, vehicles, and tools. Capital goods are also produced for the service sector, including hair clippers used by hairstylists and coffee machines for coffee shops.

Capital goods include only fixed assets of the producers. ... On the other hand, goods used as raw material are not capital goods as these are not repeatedly used in the process of production. Thus, all producers goods are not capital goods.

Answer: Producer goods are those goods which are used in the process of production, it may be single use producer good like raw material or it may be high value capital goods like plant. Thus, all capital goods are producer goods.

Answer 2

Explanation:

All producer goods are not capital goods, because producer goods includes:

Goods which are used as raw material like wood, used to make furniture.

Goods which are used as fixed assets like plant and machinery.

Capital goods include only fixed assets of the producers. These are durable goods. On the other hand, goods used as raw material are not capital goods as these are not repeatedly used in the process of production. Thus, all producers goods are not capital goods.