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.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
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.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
What is called a place of work where all workers within a section must belong to a single official recognized trade union ?
Goods that satisfy human wants though their direct use or consumption are called______________?
Term the enterprise or organization which is managed by those who use its facilities or services ?
What is meant by capital stock ___________?
Term the body of goods and monies from which future income can be derived ?
How is termed the balance of investment and return; in which investment and return are exactly equal ?