Capital Vs Consumer Goods

Capital Vs Consumer Goods

Capital Vs Consumer Goods

oboloo’s Glossary

Capital goods are those items used in businesses that are intended to produce more capital or income, such as buildings, land, heavy machinery and other productive items. Capital goods can also be intangible investments, like software or patents. On the other hand, consumer goods are products purchased for personal use and enjoyment, such as food, clothing, toys and electronics. Consumer goods are generally consumed and disposed of quickly. Capital goods tend to be long-term investments with a low rate of obsolescence and high economic value.