Capital goods are goods used to produce other goods, such as machinery, equipment, and buildings. They are not counted in the GDP as final goods because they are not consumed by the end user, but rather used in the production process. Capital goods may not be used up in the same period that they are produced, but rather provide value over a longer period of time.

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Capital Goods Are

Question 4

Multiple Choice

Capital goods are

A) not counted in the GDP as final goods.
B) not used to produce other goods.
C) used up in the same period that they are produced.
D) goods used to produce other goods.

Correct Answer: