|
Search over 100 encyclopedias and dictionaries: |
Research categories | Follow us on Twitter |
Research categories
View all topics in the newsView all reference sources at Encyclopedia.com |
|||
Capital Goods
CAPITAL GOODSCapital goods include goods such as tools and machinery that businesses use to produce consumer products and services. Capital goods are distinguished from consumer goods, which are not used in the production process and are intended for personal consumption. Capital goods use resources in such a way that they increase the capability of the production process. As a result they help to make more goods available to society than would ordinarily exist. For this reason some economists believe that capital goods represent an efficient use of the earth's limited resources. Capital goods can be considered fixed goods, that is, assets that are necessary to carry on a business. Fixed goods cannot be readily converted to cash and include equipment, buildings, and land. Capital goods are often called productive capital because they represent the potential capacity to produce future consumer goods. See also: Consumer Goods |
|
|
Cite this article
"Capital Goods." Gale Encyclopedia of U.S. Economic History. 1999. Encyclopedia.com. 30 May. 2012 <http://www.encyclopedia.com>. "Capital Goods." Gale Encyclopedia of U.S. Economic History. 1999. Encyclopedia.com. (May 30, 2012). http://www.encyclopedia.com/doc/1G2-3406400136.html "Capital Goods." Gale Encyclopedia of U.S. Economic History. 1999. Retrieved May 30, 2012 from Encyclopedia.com: http://www.encyclopedia.com/doc/1G2-3406400136.html |
|
capital goods
capital goods Long-term man-made factors of production, such as factories and machinery.
|
|
|
Cite this article
"capital goods." A Dictionary of Business and Management. 2006. Encyclopedia.com. 30 May. 2012 <http://www.encyclopedia.com>. "capital goods." A Dictionary of Business and Management. 2006. Encyclopedia.com. (May 30, 2012). http://www.encyclopedia.com/doc/1O18-capitalgoods.html "capital goods." A Dictionary of Business and Management. 2006. Retrieved May 30, 2012 from Encyclopedia.com: http://www.encyclopedia.com/doc/1O18-capitalgoods.html |
|
Search over 100 encyclopedias and dictionaries:
HighBeam™ Research, Inc. © Copyright 2012. All rights reserved.
The Encyclopedia.com advertising network includes:
