capital and consumer goods + resources

Question 1

what are capital goods

Answer 1

goods that are used to make consumer goods and services.

capital goods could be machinery, technology, software, factories and buildings

Question 2

what are consumer goods and services

Answer 2

goods and services which satisfy our needs and wants directly

Question 3

what are the three sub divisions of consumer goods and services

Answer 3

consumer durables

consumer non durables

consumer services

Question 4

what are consumer durables

Answer 4

products that provide a steady flow of satisfaction over their working life. (washing machines, phones, etc)

Question 5

what are consumer non durables

Answer 5

products that are used up in the act of consumption. (coffee, tea, house heating)

Question 6

what are consumer services

Answer 6

intangible products or actions that are normally produced and consumed simultaneously. (haircuts, tickets to a show)

Question 7

what are renewable resources

Answer 7

they are replaceable overtime providing that the rate of extraction of the resource is less than the natural rate at which the resource renews itself. (solar energy, oxygen, biomass, fish and forestry)

Question 8

what are free goods

Answer 8

they are goods that do not use up any factor inputs when supplied.

free goods have zero opportunity cost.

Question 9

what are non renewable resources

Answer 9

they have a finite supply (plastics, crude oil, coal, natural gas and other fossil fuels) they cannot be replenished

the rate of extraction of finite resources depends in part on the current market price.