Question

Who purchases capital goods?

• A. Consumer
• B. Businessman
• C. Entrepreneur
• D. All of them

Hint:

Capital goods are bought by businesses or individuals involved in the production process, whether for personal or commercial use.

Answer 1

The Correct Option is D

Step 1: Understanding capital goods.
Capital goods are the tools, machinery, and equipment used in the production of other goods and services. These goods are purchased by individuals or entities involved in production, including consumers, businessmen, and entrepreneurs.

Step 2: Analyzing the options.
(A) Consumer: Consumers purchase goods for personal use, but they may also purchase capital goods for their businesses or for production purposes.
(B) Businessman: Businessmen typically purchase capital goods for use in their businesses or for investment purposes.
(C) Entrepreneur: Entrepreneurs are often the ones who purchase capital goods to start or run their businesses.
(D) All of them: Correct. All of the above individuals or entities can purchase capital goods depending on their needs.

Step 3: Conclusion.
The correct answer is (D) All of them, as consumers, businessmen, and entrepreneurs may all purchase capital goods.