The Basic Difference Between Consumer Goods and Capital Goods Is

question 261

Multiple Choice

The basic difference between consumer goods and capital goods is that

• A) consumer goods are produced in the private sector and capital goods are produced in the public sector.
• B) an economy that commits a relatively large proportion of its resources to capital goods must accept a lower growth rate.
• C) the production of capital goods is not subject to the law of increasing opportunity costs.
• D) consumer goods satisfy wants directly, while capital goods satisfy wants indirectly.