Define capital goods. capital goods synonyms, capital goods pronunciation, capital goods translation, English dictionary definition of capital goods. pl.n. Goods, such as machinery, used in the production of commodities; producer goods. American Heritage
capital goods the long-lasting durable goods, such as machine tools and furnaces, that are used as FACTOR INPUTS in the production of other products, as opposed to being sold directly to consumers. See CAPITAL, CONSUMER GOODS, PRODUCER GOODS. Collins Dictionary of Economics, 4th ed. © C....
2. (Economics) material wealth owned by an individual or business enterprise 3. (Economics) wealth available for or capable of use in the production of further wealth, as by industrial investment 4. make capital of make capital out of to get advantage from 5. (Government, Politics & Diplomac...
Compliments Goods that are used in tandem with each other; when the price of one increases, the demand for other goes down. Consumer surplus The difference between the maximum amount that a person is willing to pay for a good and its current market price. Demand curve A graph illustrating ...
For example, India might be able to produce everything more efficiently than England, but India might profit most by concentrating its resources on textiles, in which its efficiency is relatively greater than in other areas of Indian production, and by importing British capital goods. The beauty ...
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005 capital (1) In architecture, the top part of a column.(2) In finance: (a) All the accumulated goods, possessions, and assets used for the production of income and wealth. (b) The amount invested in ...
Learn about utility theory. Study utility in economics, examine utility economics examples, and discover how utility affects the decisions...
Capital deepening refers to an increase in the capital-labor ratio. The capital-labor ratio can go higher either due to an increase in the capital stock or through a decrease in the number of workers. Capital deepening increases the marginal product of labor – i.e., it makes labor more ...
How Capital Goods Help the Economy? The role of capital assets in an economy is vital. They have importance in increasing the economy's productive capacity in the long run. Developed countries like the USA embrace introducing and producing new capital assets like machinery. It makes work easier...
How Capital Is Used Capital is used by companies to pay for the ongoing production of goods and services to create profit. Companies use their capital to invest in all kinds of things to create value. Labor and building expansions are two common areas of capital allocation. By investing capita...