Question

Goods produced by the economic system that are used as inputs in the production of future goods and services are A) consumable goods. B) capital goods. C) tangible goods. D) depreciation goods.

Answer 1

Answer: Option (B) is correct.

Goods that tend to be recognized as tangible assets which are further used by an/a organization/business/economy to produce commodities and services are known as Capital goods. These are also known as durable goods or economic capital.

In microeconomics term, these goods can be referred to as inorganic, durable commodities an organization uses to produce services.