Question

The machines used to make cars are examples of _____.

Answer 1

Capital goods are goods that are used to produce other goods rather than are needed by themselves. Machines used to make cars fulfill this definition- so capital goods is the right answer.

Answer 2

The correct answer is A. Capital Goods

Explanation:

Capital goods are goods used to produce other goods or services, in this case, specific machines are used to produce cars (goods). Additionally, as capital goods are only tools to make other goods they are not bought by consumers. Other examples of capital goods are tools, buildings or any equipment involved in the production of goods and services. Also, options B and C are not correct as machines are not natural resources as they are not directly obtained from nature, either human resources as these are people involved in the production of something, which is not related to the machines.