Question

Distinguish between Consumption goods and Capital goods.

Answer 1

	Consumption goods	Capital goods
1.	Goods like food and clothing, and services like recreation that are consumed when purchased by their ultimate consumers are called consumption goods or consumer goods.	The goods which are in production for long period and have high value, are known as capital goods.
2.	These goods have a high demand in the market.	These goods have less demand as compared to consumer goods.