Question

Distinguish between consumer goods and capital goods. Which of these are final goods?

Answer 1

• Goods which are consumed (or used) by the consumers for satisfaction of wants are called consumer goods, e.g., food and clothing, school books, washing machine, fan, etc. 
• Goods used in producing other goods are called capital goods. They are of durable character, e.g., machines, tools and implements, etc. 
• Both consumption goods and capital goods are final goods because they are used by their ultimate users. They are not meant for resale.