Question | 6. Distinguish between consumer goods and capital goods. |
Class | Class 12 |
Subject | Economics (Macroeconomics) |
Category | Class 12 Economics Solutions Sandeep garg |
Q.6 Distinguish between consumer goods and capital goods. Which of these are final goods?
Solution:-
BASIS | CONSUMER GOODS | CAPITAL GOODS |
Human Wants | They satisfy human wants directly. | They satisfy human wants indirectly. |
Production Capacity | They are not involved in further production process. | They are involved in further production process. |
Expected Life | Most of them have a short lifespan except Durable goods. | They have a long- life expectancy. |
Demand in Market | They have “Direct Demand”. | They have “Derived Demand”. |
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