Which of the following is/are example(s) of capital goods?

  1. Machinery
  2. Cotton yarn
  3. Buildings
  4. Land
  5. Labour

Select the correct option from the codes given below:

Answer: [C] Only 1 & 3

Capital goods include plant machinery, equipment and accessories required for manufacture or production of goods or for rendering services, either directly or indirectly. Capital Goods are NOT obtained naturally, they are to be created or manufactured. In this question, Land is not a capital good but is a factor of production (Land, Labour & Capital are means of production).  Cotton yarn is an example of Intermediate good further used in Garments industry. Labour is a factor of production and not comes under goods.

This question is a part of GKToday's Integrated IAS General Studies Module