What are Capital Goods in class 12 CBSE Board?

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What are Capital goods and how are they different from consumption goods in Class 12. Here we are going to discuss the definition of Capital goods according to the syllabus of class 12 CBSE Board.

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You must have read the Capital Goods term in the National income chapter of Macro-Economics. See, in order to calculate national income, we need to determine what is final goods.

You might have come across the most popular three terms consumption goods, Capital goods, and intermediate goods too.

Out of these, we have to determine which is the final goods.

However, if you are confused about these three terms. Read the below article to have a better understanding.

Difference b/w consumption goods, capital goods and intermediate goods

So, lets understand what actually Capital Goods are

Definition of Capital Goods

See, here definition of capital goods only restricted to the syllabus of Class 12 CBSE Board.

Goods capable of being used for producing other goods are called capital goods.


For Example:- Machinery, Buildings, Equipment.

Difference between Capital Goods and Consumption Goods

The basic difference of consumption goods is

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Anurag Pathak
Anurag Pathak is an academic teacher. He has been teaching Accountancy and Economics for CBSE students for the last 18 years. In his guidance, thousands of students have secured good marks in their board exams and legacy is still going on. You can subscribe his youtube channel and can download the Android & ios app for free lectures.
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