Capital goods are goods used in the production of other goods and services. They are not counted as final goods in GDP because they are not consumed directly by households. They are typically durable goods and have a longer lifespan than intermediate goods. Examples of capital goods include buildings, machinery, and tools.

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Capital Goods Are

Question 27

Multiple Choice

Capital goods are

A) not counted in 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: