Difference Between Consumer Goods and Capital Goods


Economic goods are divided into two. They are consumer goods and producer (capital) goods.

i)     Consumer Goods
Ø They directly satisfy human wants
Ø They are used for final consumption. (Consumption refers to the using up of goods and services to satisfy human wants)
Ø Some of them are durable. (They can be used for a long period of time. Eg. Motor car)
Ø Others are non-durable (They have a short life. Eg. Cigarettes)

ii)    Capital Goods
Ø They indirectly satisfy human wants
Ø They are used to produce other goods and services
Ø They are used by producers but not consumers
Ø Most of them are durable. Eg. Machinery
Ø Some of them are non-durable. Eg. Raw materials
Ø They are also referred to as producer goods
Ahmed Xahir
Ahmed Xahir

This is a short biography of the post author. Maecenas nec odio et ante tincidunt tempus donec vitae sapien ut libero venenatis faucibus nullam quis ante maecenas nec odio et ante tincidunt tempus donec.