Capital goods are goods that are used to produce other goods and services. They are not consumed directly by consumers but are necessary for the production of other goods and services. Examples of capital goods include machinery, tools, buildings, and technology.

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Capital Goods

Question 326

Multiple Choice

Capital goods

A) are a special type of consumption goods.
B) are consumed because they enhance the enjoyment consumers obtain from other goods and services.
C) are goods used to make consumer goods and services.
D) refer to the expenses that a company incur for producing other types of goods.

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