The basic difference between consumer goods and capital goods is that
A) consumer goods are produced in the private sector and capital goods are produced in the public sector.
B) an economy that commits a relatively large proportion of its resources to capital goods must accept a lower growth rate.
C) the production of capital goods is not subject to the law of increasing opportunity costs.
D) consumer goods satisfy wants directly, while capital goods satisfy wants indirectly.

Question

Quizplus · Accepted Answer

Consumer goods are produced to satisfy the immediate wants and needs of consumers while capital goods are used to produce other goods and services. Therefore, capital goods satisfy wants indirectly by facilitating the production of consumer goods.

The Basic Difference Between Consumer Goods and Capital Goods Is