Point out the term for producer goods such as machinery that is used in production of commodities ?
Correct answer: C. Capital goods
- A. Capital assets
- B. Running capital
- C. Capital goods
- D. Hard capital
Explanation
Capital goods are producer goods such as machinery, tools, and equipment used to produce other commodities. They are not consumed directly to satisfy final consumer wants.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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