Question

Which of the following is an example of a capital good?

• A. Tractor
• B. Tools
• C. Machine
• D. All of these

Hint:

Capital goods are essential for the production process and include equipment, machinery, and tools used in industries.

Answer 1

The Correct Option is D

Step 1: Understanding Capital Goods.
Capital goods refer to goods that are used to produce other goods and services. These include machinery, tools, and tractors, which are essential for production in various industries.
Step 2: Analysis of options.
- (A) Tractor: A tractor is a capital good used in agriculture for producing crops.
- (B) Tools: Tools are capital goods as they are used to produce other goods.
- (C) Machine: Machines are capital goods, necessary for manufacturing products.
- (D) All of these: All the above options are examples of capital goods.
Step 3: Conclusion.
All of the options mentioned are capital goods, so the correct answer is (D) All of these.