Question

Choose the correct definition of capital goods.

the money used to produce goods and services
the people used to make goods or services
the items from nature used to make goods and services
the factories, machines, technology, tools, equipment, and any other man-made goods used to make other goods or services

Answer 1

the factories, machines, technology, tools, equipment, and any other man-made goods used to make other goods or services

(These are capital goods — durable man‑made inputs used in production.)