Final answer:
Capital goods are used to produce other goods and services, while raw materials are the basic materials used in production. Capital goods are tangible assets used in the production process, while services are intangible activities performed to fulfill needs.
Step-by-step explanation:
When it comes to purchasing, there are differences between capital goods and raw materials, as well as between capital goods and services.
1. Capital Goods vs Raw Materials:
Capital goods are goods that are used to produce other goods and services. Examples of capital goods include machinery, buildings, and tools. On the other hand, raw materials are the basic materials that are used in the production of goods. Examples of raw materials include wood, steel, and cotton.
2. Capital Goods vs Services:
Capital goods are tangible assets that are used in the production process, while services are intangible activities that are performed by individuals or businesses to fulfill a particular need. Examples of capital goods are manufacturing equipment or vehicles, while examples of services are consulting, transportation, or healthcare.