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.
capital goods class 12
what are capital goods
what is capital goods example
What is the importance of capital goods
Is electricity a capital good
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.S.K AGGARWAL BOOK
For Example:- Machinery, Buildings, Equipment.
Difference between Capital Goods and Consumption Goods
The basic difference of consumption goods is