Need help on this one. Trying to decide between a and b. Sarah wants to invest in capital goods in order to increase the capacity of her Internet Café. Which of the following would qualify as a capital good?

a. bulldozer
b. New computers
c. hammer
d. airplane

1 answer

Are you clear on what an Internet Cafe is? http://en.wikipedia.org/wiki/Internet_caf%C3%A9

Are you clear on what a "capital good" is? http://en.wikipedia.org/wiki/Capital_good

Which of those four would you find in use in an Internet Cafe?