Capital goods are
A) long-lived goods used for producing other goods and services.
B) the ultimate purpose of production.
C) publicly provided.
D) non-market goods.
E) excluded from GDP.

Question

Quizplus · Accepted Answer

Capital goods are goods used to produce other goods and services, such as machinery and equipment, and are designed to have a long life span. They are treated as part of investment spending by businesses and are included in GDP calculations. Choices B, C, D, and E do not accurately describe capital goods.

Capital Goods Are