Entity: CAPITAL-GOODS
Capital goods are physical assets such as buildings, machinery, and equipment used by companies to produce goods and services. These assets are not directly consumed but play a crucial role in the production process.
CAPITAL-GOODS
Etymology
The term 'capital goods' originated from the economic concept of distinguishing between assets used for production purposes and those used for consumption.
Definition
Capital goods refer to the buildings, machines, and equipment used in the production of products or services. These assets are essential for facilitating the production process and enhancing productivity.
Historical Context
The concept of capital goods has been integral to economic theory, highlighting the importance of investment in productive assets for economic growth and development.
Cultural Significance
Capital goods play a crucial role in the functioning of businesses and industries, contributing to overall economic activity and growth.
Related Concepts
Capital goods are closely related to the concepts of consumer goods, intermediate goods, and factors of production in economic analysis.
See Also
- Consumer Goods
- Factors of Production
- Intermediate Goods
Capital goods refer to the buildings, machines, and equipment used in the production of products or services.