Question

Distinguish between consumption goods and capital goods

Answer 1

Answer:

• Consumer goods are defined as the goods that are used for final consumption, i.e. the goods are not used for further processing.

• On the other hand, capital goods are those goods that are used for future production by the manufacturers, rather than by the consumers for final use.

Explanation:

• Capital goods are man-made, durable items businesses use to produce goods and services.

• They include tools, buildings, vehicles, machinery, and equipment.

• Capital goods are also called durable goods.