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Question :

Assertion (A): All capital goods are producer goods but all producer goods are not capital goods.
Reason (R): Capital goods and single-use producer goods are the two types of producer goods.

Option 1: Both, A and R, are true and R is the correct explanation of A.

Option 2: Both, A and R, are true and R is not the correct explanation of A.

Option 3: A is true but R is false.

Option 4: A is false but R is true.


Team Careers360 21st Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Both, A and R, are true and R is the correct explanation of A.


Solution : All goods used by the produces are not capital good. Producer goods includes two type of goods-

  •  Single use producer goods which includes raw material like coal, wood, etc., they are not capital goods and cannot be used repeatedly in the production process.
  • Capital goods are like fixed assets like plants and machinery which are used again and again in the production process..

Hence, Option A is correct.

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