Capital Goods
Ameena Benselloum

Capital Goods are goods used in producing other goods like buildings, machines, equipment etc.                                 

Capital Goods are used to produce consumer goods and services because the products are developed in factories or using equipment that are capital goods.

The factors of production are land, labor, capital & entrepreneurship. Capital goods are a part of the labor factor because they help to produce goods and services.

Capital Goods impact the economy because without them we would be unable to produce goods and services as efficiently as we can now. The price of goods and services would also drastically increase and most likely they would become scarce due to the high demand and low supply.

The Bloomberg Article Capital Goods Demand Signals Stronger U.S Growth: Economy essentially explains how the increase of manufacturing is improving the economy, selling more houses & goods and putting the U.S a step in the right direction.

Bibliography:

  • "Capital Goods Definition." Investopedia. N.p., 18 Nov. 2003. Web. 26 Jan. 2015.
  • Amadeo, Kimberly. "Capital Goods Definition, Examples and Effect on Economy." N.p., n.d. Web. 26 Jan. 2015.
  • "Images+of+a+good+economy - Google Search."Images+of+a+good+economy - Google Search. N.p., n.d. Web. 26 Jan. 2015.
  • "Capital+goods+hd - Google Search." Capital+goods+hd - Google Search. N.p., n.d. Web. 26 Jan. 2015.
  • "Images+of+a+capital+good - Google Search." Images+of+a+capital+good - Google Search. N.p., n.d. Web. 26 Jan. 2015.

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