Capital Goods

Paul P, Jack J, Lee M, Isabel P

Definition Of Capital Goods

Any tangible assets that an organization uses to produce goods or services such as office buildings, equipment, and machinery. Consumer goods are the end result of this production process.

Examples in the Local Marketplace

Some examples in the local marketplace are machines, raw materials, tools, wood, minerals, iron, steel, excavators and forklifts.

How are They Used to Produce Consumer Goods & Services?!

Capital goods are tangible objects that are used in the production of other goods or commodities or during the providing of services.

How Capital Goods Relate to Factors of Production

Factors of production may refer specifically to the primary factors, including capital goods applied to production. Such have been opposed to the nature given or original factors of production, i.e., natural resources (land) and human labor. Capital goods are one of the three basic factors of production.

The Importance of Capital Goods & Impact on Economy

Capital goods are important because they help produce goods quicker. Also when the goods can be produced at a cheaper price this allows the company to sell more goods to the consumer and when the goods are cheaper this allows more people to buy the products.

Analysis and Summary of the Article: Capital Goods Demand Signals Stronger U.S. Growth: Economy

In the Article, Capital Goods Demand Signals Stronger U.S. Growth: Economy, it discusses the market of the US. It says that many parts are increasing and the economy is looking like it is on an uprise. It says that companies are demanding more and more capital goods and new technology to stay in competition with their rivals. With this demand for capital goods come an increase in jobs in two ways, the people who make the goods and the people who operate and use them at the company. With the increase in capital goods companies can get stuff done at a higher rate and that means they will have a larger supply which will lower it's cost and when the cost is lowered than more people will start to buy the items. Because people are now saving more money on these type of items they have more left over money to spend on things such as bigger houses. As a result the housing marker is also experiencing an increase. Yet, the housing market isn't the only market benefiting from the growth in demand for capital goods, almost every market is. This article really shows the importance of capital goods and how big of an impact they can have on our economy.

Works Cited!

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