Capital goods are goods that are used to produce other goods and services. They are not meant for direct consumption by individuals or households but play a key role in the production process. Examples of capital goods include machinery, equipment, tools, and infrastructure.

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Capital Goods

Question 315

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) lead to inward shifts of a production possibilities curve.

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