Which among the following are capital goods and which are consumer goods (or consumption goods) and why?
Which among the following are capital goods and which are consumer goods (or consumption goods) and why?
(a) A car used as a taxi
(b) Refrigerator in a hotel
(c) Air-conditioner in a house
Anurag Pathak Changed status to publish December 4, 2023
(a) A car used as a taxi:
It is a capital good because it is used for producing services for generating income.
(b) Refrigerator in a hotel:
It is a capital good because it is used for providing services over a period of time to the production unit.
(c) Air-conditioner in a house:
It is a consumer good because it is used for the satisfaction of a want by a household.
Anurag Pathak Changed status to publish December 4, 2023
