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    Question

    Identify the true characteristics of a Capital Good.

        A. It is a produced durable output of a man-made process.     B. It again acts as an input for further production process.     C. While acting as an input, it does get transformed or consumed.
    A Both A and B Correct Answer Incorrect Answer
    B Both A and C Correct Answer Incorrect Answer
    C Both B and C Correct Answer Incorrect Answer
    D All A, B and C Correct Answer Incorrect Answer

    Solution

    Capital goods are durable products created through manufacturing that serve as inputs for further production. These goods do not get transformed or consumed during the production process, hence option C is incorrect.

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