Advertisements
Advertisements
Question
Distinguish between Consumption goods and Capital goods.
Solution
| Consumption goods | Capital goods | |
| 1. | Goods like food and clothing, and services like recreation that are consumed when purchased by their ultimate consumers are called consumption goods or consumer goods. | The goods which are in production for long period and have high value, are known as capital goods. |
| 2. | These goods have a high demand in the market. | These goods have less demand as compared to consumer goods. |
APPEARS IN
RELATED QUESTIONS
Calculate autonomous consumption expenditure from the following data about an
economy which is in equilibrium.
National income = 1200
Marginal propensity to save = 0.20
Investment expenditure = 100
How are capital goods different from consumption goods?
What is ex-Ante consumption?
Distinguish between autonomous consumption and induced consumption.
What one step can be taken through market to reduce the consumption of a product harmful for health?
Given that national income is Rs 80 crore and consumption expenditure Rs 64 crore, find out average propensity of save. When income rises to Rs 100 crore and consumption expenditure to Rs 78 crore, what will be the average propensity to consume and the marginal propensity to consume?
Consumption goods are those which are bought to satisfy wants:
An example of consumption goods is:
State the meanings of the following:
Consumption Goods
