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I need some major help with a word what is capital good's?

2007-02-26 07:47:37 · 3 answers · asked by Sarah 2 in Education & Reference Homework Help

3 answers

Any goods used in the production of (physical) capital by an organization to produce other goods. Examples of capital goods include office buildings, equipment, tools, and machinery. Much of the world lives in a capitalistic society where capital goods are used to help generate a profit for owners of a business.

Capital goods refer to real products that are utilized in the production of other products but are not incorporated into the other products themselves. They are often called fixed human-made means of production.

Capital goods are different from raw materials which are used up in the production of goods. Many goods could be categorized as capital goods or as consumer goods according to usage; for example cars and personal computers, these - and most capital goods - are also durable goods.

Capital goods are also different from financial capital. Capital goods are real objects owned by entities (individuals, governments, and other organizations) in order to get a positive return of some sort from production, while financial capital refers to pieces of paper (or other kinds of promises) that represent claims on these types of goods and on other sources of promised future income.

Retrieved from "http://en.wikipedia.org/wiki/Capital_good"

2007-02-26 08:08:41 · answer #1 · answered by Anonymous · 0 0

A good, such as a machine, that, once in place, becomes part of the capital stock.

Capital goods, in contrast to consumer goods, are goods used in the production of (physical) capital. Many goods could be categorized as capital goods, or as consumer goods according to usage; for example cars and personal computers. Most CG are durable goods.

:-)

2007-02-26 17:25:24 · answer #2 · answered by jen 2 · 0 0

Capital goods are human-made resources (buildings, machinery, and equipment) used to produce goods and services; they are goods that do not directly satisfy human wants.

Do not include money in capital goods, since money is a method of exchange and does not produce any goods on its own, like buildings or equipment do.

Good luck.

2007-02-26 15:52:58 · answer #3 · answered by Aelita 4 · 0 0

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