The tools that are used to create goods are called capital. Sometimes, it is also called capital good.
Explanation:
When it comes to our needs and wants, humans usually express them in terms of economic products. These include goods and services that are relatively scarce, useful, and transferable to others. Products like these are generally grouped into two categories. The first one is good, which refers to a tangible item that is useful such as a car, book, or a smartphone. These goods can be divided into several categories, depending on their use. However, some goods can belong to two categories such as an automobile.
Economic products—goods and services that are valuable, relatively rare, and can be transferred to others express human’s needs and desires are usually in. These products are generally divided into two groups. The first is a good, functional tangible item, such as cars, books, or phones, which can be used to meet needs or wants. The goods are divided into several categories, depending on the use - and some items, such as cars, that can belong to two groups at the same time:
· Durable goods are goods which last three or more years if used regularly. Durable goods include equipment such as tractors and robotic welders and consumer goods such as cars.
· Nondurable goods are items which last more than three years if used regularly. Writing paper, food, and most fashion items are examples of nondurable goods.
· Consumer goods are goods intended for end-use by individuals, such as shirts, shoes, or cars.
· Capital goods are tools or goods such as equipment or machinery used by businesses to create other products.
LEARN MORE
If you’re interested in learning more about this topic, we recommend you to also take a look at the following questions:
• Which of the following statements is TRUE about capital goods? brainly.com/question/431300
• When the total U.S. production of goods and services is divided into consumption goods and services, capital goods, government goods and services, and export goods and services, the largest component is? brainly.com/question/10854532
Keywords :
Durable goods, capital goods
Subject : Social Studies
Class : 7-9
Sub-Chapter : Economies
