Capital Goods
Capital goods are physical assets that an organization uses in the process of production to manufacture products and services that consumers will use later. Capital goods are also known as tangible goods as they are physical in nature. It involves buildings, machinery, equipment, vehicles, tools, etc. Capital goods are not finished goods; rather, they are used to make finished goods.
They are also produced for the service sector, e.g., hair clips used by hairstylists and coffee machines for restaurants and coffee shops. In other words, capital goods do not create utility or satisfaction for the buyer, instead they are used to produce the final product, which does create satisfaction or utility.
Introduction to Macroeconomics
Macroeconomics is a part of economics that focuses on how general economies, markets, or different systems that operate on a large scale behave. Macroeconomics concentrates on phenomena like inflation, price levels, rate of economic growth, national income, gross domestic product (GDP) and changes in unemployment.
“Macroeconomics is that part of economics which studies the overall averages and aggregates of the system”. – KE Boulding
Contact Us