Question

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

Answer 1

Correct Answer - (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 satisfaction of a want by a household.
(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 satisfaction of a want by a household.