Question

Give two examples each for Consumption goods and Capital goods.

Hint:

Consumption goods are for personal enjoyment (you eat the bread). Capital goods are for production (the oven that bakes the bread).

Answer 1

Consumption Goods: These are goods used by final consumers to satisfy their wants directly. They are not used for further production.

Food items like bread and milk.
Consumer electronics like a television or smartphone.

Capital Goods: These are durable goods used in the production of other goods and services. They are not consumed directly.

Machinery in a factory.
A commercial vehicle like a delivery truck.