1.

Distinguish between consumer goods and capital goods. Which of these are final goods?

Answer»

Consumer Goods- Goods which are capable of satisfying human needs directly are called consumpton goods.

Capital Goods- All goods which help in the production of other goods either as fixed assets or as inventory stocks are called capital goods.

Consumer goods are final goods.

Detailed Answer:

Basis for comparisonConsumer GoodsCapital Goods
MeaningGoods that are used by the end user for. consumption is called consumer goodsGoods that are deployed to produce consumer goods is called capital goods.
MarketingBusiness to consumer.Business to Business.
PurposeBought for personal consumption.Bought for making other products. 
BuyerConsumerManufacturers
DemandHighComparatively less
Price DeterminationBy suppliersBy companies


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