Advertisements
Advertisements
Question
Answer the following question briefly:
How are capital goods and consumer goods different from each other?
Solution
| Consumer goods | Capital goods |
|
Consumer goods are those goods that are directly used for the satisfaction of human wants. These are not used in the production of other goods. Consumption goods are meant for final consumption as final goods. |
Capital goods are those goods which are used in the process of production for several years and are of higher value. These goods are fixed assets of the producers. The use of these goods leads to depreciation. |
| Example: Bread and butter consumed by the consumers. | Example: Plant and Machinery |
APPEARS IN
RELATED QUESTIONS
What are free goods? Give an example.
Answer briefly the following questions :
Distinguish between economic goods and free goods.
Answer the following question:
Discuss the nature of primitive economies.
Define economic organisation.
Free goods are those goods that are gifts of nature and are available in abundance to all.
Which one of the following examples indicates the use of free goods?
