Which of these is a capital good?

A car bought by a family for holidaysCorrect answerYour answerDiesel bought by a transport companyCorrect answerYour answerA refrigerator bought by a householdCorrect answerYour answerA truck bought by a transport companyCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

The truck earns income for the company by carrying goods for years.
Diesel is used up (intermediate); the family's car and refrigerator are consumer durables.

Concept: Spotting capital goods
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsConsumption and capital goods

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Ten questions from Basic Concepts & the Circular Flow, at your own pace.

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Ten questions from Basic Concepts & the Circular Flow, at your own pace.

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Which of these is a capital good?

Explanation