Which of the following is a capital good?
A)An oven in a bakery.
B)A home computer.
C)The first application of CD ROM technology to an economics textbook.
D)An investment in IBM stock.

Question

Quizplus · Accepted Answer

A capital good is a long-term investment used in the production of goods and services, such as machinery or equipment. An oven in a bakery is a specific example of a capital good, as it is used in the production of baked goods.

Answer: C 
 The first application of CD ROM technology to an economics textbook could also be considered a capital good, as it is a long-term investment in a product used for the production of education materials. It is not as clear-cut as the oven in a bakery, but it could still fit the definition.

Answers B and D are incorrect as they do not fit the definition of a capital good. A home computer is not generally considered a capital good, as it is often used for personal or recreational purposes rather than production. Similarly, an investment in IBM stock is not a physical good that is used in production.

Which of the Following Is a Capital Good