Goods that are brought not for meeting the immediate need of the consumer but for producing other goods are called _______.

Question

Question

This question was previously asked in

NTPC CBT-I (Held On: 16 Jan 2021 Shift 1)

Answer 1

The correct answer is Capital Goods.

Capital goods:- Goods that are bought not for meeting the immediate need of the consumer but for producing other goods

Key Points

Capital goods:- Goods that are bought not for meeting the immediate need of the consumer but for producing other goods
Final goods:- These are those which are used for:
- Personal consumption (like bread purchased by consumer household), or
- Investment or capital formation (like building, machinery purchased by a firm)
Intermediate goods:- These are those, which are used for:
- Further processing (like sugar used for making sweets), or
- Resale in the same year (If car purchased by a car dealer for resale).
Consumption goods:- Those goods which satisfy the wants of consumers directly.