Question

ALL PRODUCER GOODS ARE CAPITAL GOODS BUT ALL CAPITAL GOODS ARE NOT PRODUCER GOODS.EXPLAIN

Answer 1

Producer goods include all those goods which are used in the process of production. They include
1) Goods used as raw materials in production
2) Goods used as fixed assets in production

On the other hand, capital goods include only those goods which are used as fixed assets in production. Therefore, we can say that all producer goods are capital goods but all capital goods are not producer goods.

Answer 2

Answer: all capitals goods are producer goods but all producer goods are not capital goods, because producer goods includes:

(I) goods used to be as raw material.

(II) or goods used as fixed assets.

but capital goods are only includes such goods which are used as fixed assets not as raw material.

thus, producer goods like wood are not used as fixed assets . so thats why all capitals goods are producer goods bit all producer goods are not capital goods;)

Explanation: