What is the difference between capital goods and consumer goods?
What will be an ideal response?
Capital goods are goods that will be used to produce other goods in the future. Consumer goods are goods that are used for current consumption.
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The demand for corn increases. As a result, the price of corn will ________, and the less elastic the supply of corn, the ________ will be the effect on the price
A) fall; smaller B) fall; greater C) rise; smaller D) rise; greater
Electric car enthusiasts want to buy more electric cars at a lower price. All of the following events would have this effect except
A) an increase in the number of manufacturers of electric cars. B) technological advancement in the production of electric car batteries. C) a decrease in the price of lithium, which is used in the electric car batteries. D) an increase in the price of gasoline.
The rule of 70 is: a. the ratio of 70 to the growth rate of a nation
b. the sum of 70 and the growth rate of a nation. c. the difference between 70 and the growth rate of a nation. d. the product of 70 and the growth rate of a nation.
The long-run aggregate supply curve is horizontal.
Answer the following statement true (T) or false (F)