Capital Goods

Capital Goods - capital goods are raw materials used to produce other materials such as machinery and government projects, and buildings. .Capital goods are not a finished product, or sold as a completed commodity. Instead they are unfinished materials used to create a finished product.  Capital goods are a very important economic factor because they determine if there is going to be a positive return for the manufacturing of other products.  The main difference between capital goods and consumer goods is that capital goods are sold as raw materials to other manufactures, and consumer goods are purchased and ready for household use.