Which of the following is one of the features of capital goods?

Correct option is A

Correct Answer: (a) They are durable.
Explanation:
Capital goods are physical assets used by companies to produce goods and services. They are durable and not consumed directly by consumers but used in the production process. Examples of capital goods include machinery, tools, buildings, and equipment.
Key Features of Capital Goods:
1. Durable: Capital goods are long-lasting and used repeatedly in production.
2. Not Final Goods: They are not meant for direct consumption but aid in the production of consumer goods and services.
3. Investment Goods: Companies invest in capital goods to improve productivity and efficiency.
4. High Initial Cost: They are often expensive due to their specialized use and long lifespan.
Additional Knowledge:
· Giffen Goods: These are goods that defy the law of demand, such as staple foods, where demand increases with a price rise. Capital goods are not Giffen goods.
· Inferior Goods: These are goods whose demand decreases as income increases. Capital goods are not classified as inferior goods.
· Durability: A critical characteristic of capital goods, ensuring their repeated use over time in production processes.