Q3. What is the difference between Consumption goods and Capital goods?
|Basis||Consumption Goods||Capital Goods|
|Satisfaction of Human wants||These goods satisfy human wants directly. So, such goods have direct demand.||Such goods satisfy human wants indirectly. So, such goods have derived demand.|
|Production Capacity||They do not promote production capacity.||They help in raising producting capacity.|
|Expected Life||Most of the consumption goods (except durable goods) have limited excepted life.||Capital goods generally have an execpted life of more than one year.|