What is the difference between capital goods and consumer goods?

Capital goods are man-made products used by a business to produce consumer or other capital goods. Consumer goods are products used by consumers. Capital goods include items like buildings, machinery, and tools. Examples of consumer goods include food, appliances, clothing, and automobiles.

What are capital goods?

Capital goods are any tangible asset used by a business to produce goods or services for consumer goods or use by other businesses. They are generally durable goods that can be used more than once. The most common capital goods are property, plant, and equipment (PPE). Natural resources not modified by human hands are not considered capital goods.

What is the difference between final goods and capital goods?

A final good is an item purchased for direct use by a consumer or business. Final goods are another term for consumer goods. Capital goods, meanwhile, are items used to manufacture or create another product. What is the difference between consumer goods and producer goods? Producer goods are raw materials used to create final products.