Question

why are capital goods also known as intermideat goods
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Answer 1

Answer:

[tex][/tex] Why are capital goods also known as intermideat goods.

Capital goods are any tangible asset used by one business to produce goods or services that then become an input for other businesses to produce consumer goods. They are also known as intermediate goods, durable goods or economic capital.

Difference between Capital Goods and Intermideat Goods

Both capital goods and intermediate goods are a part of goods production and the difference between the two is essential to understand.

• Intermediate goods are defined as those goods which are consumed in the process of production. For example, you are a baker. You want to produce breads. For the production of breads, you require four. Hence flour is an intermediate good for you.
• Capital goods are those final goods that the producer uses in the process of production. Note that, capital goods aren’t consumed entirely in one instance of production. For example, if you are producing breads, and you install machinery to kneed the dough, then machinery is a capital good.

Hope this helps u ..

Answer 2

Explanation:

Capital goods are any tangible asset used by one business to produce goods or services that then become an input for other businesses to produce consumer goods. They are also known as intermediate goods, durable goods or economic capital. The most common capital goods are property, plant, and equipment (PPE), or fixed assets such as buildings, machinery and equipment, tools and vehicles.