f4 econ question!!!!!!!!!!!!

- You will find it easier to understand if we put this sentence in another way.

- Think, this is an Investment Decision

- Investment in capital goods means giving up the enjoyment of consumer's
goods at the present time (here and now) in order to obtain more
satisfaction of consumer's goods in the future.

- future, could be 5 years later

- more, has a meaning of improved in quality and increase in quantity

- in Economics, Capital Goods are producer's goods, these are productive
resources used to produce other goods (i.e.consumption goods).
Examples of Capital Goods are: factory buildings, trucks, tools, machinery
and equipment.

- Consumption goods are consumer's goods, which provide immediate
satisfaction of wants and needs.
Examples of consumption goods are: food, clothes, pictures, household
furnitures.
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- The four factors of production are: Capital, labor, land, entrepreneurship
(i.e. management).

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- For more information, you can go to:

CAPITAL

- Sometimes highshool Economics textbooks are put in way that nobody can understand.