Investment goods

From Wikipedia, the free encyclopedia
Jump to navigation Jump to search

In economics, investment goods are the goods that enable production, and are the main input into new installed,factory,equipment etc

Investment goods are also known as capital goods(according to Economics).These goods are the products that have been already produced inorder to produce other valuable products or services over time.Capital goods are produced through the process of investment.

Investment goods don't become parts of the final products in spite they are used to produce those final products.The amount of investment goods determine the future standard of living of the economy.

One of the main decisions that a society has to make, while allocation of resources of the economy, is whether it will produce more of consumption goods or more of investment goods.

External sources[edit]