Definition, Meaning & Synonyms
capital goods
Noun
/ˈkæpɪtl ɡʊdz/
Definition
Capital goods are tangible assets that a company uses in the production process to manufacture products and services that consumers will later use.
Examples
- The factory invested in new capital goods to enhance production efficiency.
- Capital goods such as machinery and equipment are vital for manufacturing industries.
- The company’s expansion relied heavily on purchasing advanced capital goods.
Meaning
These goods are essential for the production of other goods and services, and they play a critical role in the economy by enabling businesses to produce output.
Synonyms
- Investment goods
- Producible goods
- Durable goods
