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The machinery, computers, and other equipment used to produce items intended to be sold to consumers are called?

a) Inventories
b) Capital Goods
c) Consumer Goods
d) Retail Assets

User Dfogni
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1 Answer

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Final answer:

The machinery, computers, and other equipment used for production are known as capital goods. These are distinct from consumer goods or inventories and essential for creating other products and services.

Step-by-step explanation:

The machinery, computers, and other equipment used to produce items intended to be sold to consumers are called capital goods. Capital goods differ from consumer goods, which are products intended for use by individuals. Capital goods include items like factory machines, office computers, and construction equipment.

While the term 'inventories' refers to goods produced but not yet sold, and retail assets are items held by retailers, capital goods are essential for producing other goods and services, thereby acting as a foundational element in the economy.

Capital goods are the tools or equipment necessary for production and are used by businesses to help them function. Examples of capital goods include office buildings, machinery, and tools.

Therefore, the correct answar is b) Capital Goods

User Daniel Walker
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