Consider the following goods:

  1. Machinery
  2. Land
  3. Labour
  4. Buildings

  Which of the above are capital goods?

Answer: [B] 1 & 4 Only

Capital goods are tangible assets such as buildings, machinery, equipment, vehicles and tools that an organization uses to produce goods or services in order to produce consumer goods and goods for other businesses. Land, Labor, Capital, and Entrepreneurship are factors of production. 

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