Question

it is argued, for economic growth
capital goods industries are more
important than Consumer goods
Industries
Do you agree with this statement .​

Answer 1

Explanation:

they play in improving the productive capacity of a company or country. In other words, capital goods make it possible for companies to produce at a higher level of efficiency. For example, consider two workers digging ditches. The first worker has a spoon and the second worker has a tractor equipped with a hydraulic shovel. The second worker can dig much faster because they have the superior capital good.

Consumer Goods

A consumer good is any good purchased for consumption and not used later for the production of another consumer good. Consumer goods are sometimes called final goods because they end up in the hands of the consumer or the end-user. When economists and statisticians calculate gross domestic product (GDP), they do so based on consumer goods.

Examples of consumer goods include food, clothing, vehicles, electronics and appliances. Consumer goods fall into three different categories: durable goods, nondurable goods and services. Durable goods have a lifespan of more than three years and include motor vehicles, appliances and furniture. Non-durable goods are meant for immediate consumption and have a lifespan of fewer than three years. This includes items such as food, clothing and gasoline. Consumer services are not tangible and cannot be seen, but can still give consumers satisfaction. Haircuts, oil changes and car repairs are examples of services.

Among the largest group of consumer goods are fast-moving consumer goods, which include nondurable goods like food and drinks.

Consumer goods can be classified in four ways:

Convenience goods are consumed and purchased regularly, such as milk.

Shopping goods require more thought and planning and include appliances and furniture.

Specialty goods are more expensive and cater to a niche market. Items such as jewelry are specialty goods.

Unsought goods are purchased by some consumers to serve a specific need. Life insurance is an unsought good.

The sale of most consumer goods is overseen by the Consumer Product Safety Act passed by Congress in 1972. The act created the U.S. Consumer Product Safety Commission, which regulates product safety and has the authority to seek recalls from manufacturers and ban products under certain circumstances.1 2

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Related Terms

Capital Goods Definition

Capital goods are tangible assets that a business uses to produce consumer goods or services. Buildings, machinery, and equipment are all examples of capital goods. more

Consumer Goods Definition

Consumer goods are the products purchased by the average consumer. more

What Are Durables?

Durables are consumer goods that do not have to