Capital 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
"Capital Goods." Gale Encyclopedia of U.S. Economic History. . Encyclopedia.com. (December 18, 2018). https://www.encyclopedia.com/history/encyclopedias-almanacs-transcripts-and-maps/capital-goods
"Capital Goods." Gale Encyclopedia of U.S. Economic History. . Retrieved December 18, 2018 from Encyclopedia.com: https://www.encyclopedia.com/history/encyclopedias-almanacs-transcripts-and-maps/capital-goods
Encyclopedia.com gives you the ability to cite reference entries and articles according to common styles from the Modern Language Association (MLA), The Chicago Manual of Style, and the American Psychological Association (APA).
Within the “Cite this article” tool, pick a style to see how all available information looks when formatted according to that style. Then, copy and paste the text into your bibliography or works cited list.
Because each style has its own formatting nuances that evolve over time and not all information is available for every reference entry or article, Encyclopedia.com cannot guarantee each citation it generates. Therefore, it’s best to use Encyclopedia.com citations as a starting point before checking the style against your school or publication’s requirements and the most-recent information available at these sites:
Modern Language Association
The Chicago Manual of Style
American Psychological Association
- Most online reference entries and articles do not have page numbers. Therefore, that information is unavailable for most Encyclopedia.com content. However, the date of retrieval is often important. Refer to each style’s convention regarding the best way to format page numbers and retrieval dates.
- In addition to the MLA, Chicago, and APA styles, your school, university, publication, or institution may have its own requirements for citations. Therefore, be sure to refer to those guidelines when editing your bibliography or works cited list.