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What is the difference between capital goods and consumer goods?
  1. Capital goods create value, while consumer goods do not.
  2. Capital goods cost more than consumer goods.
  3. Capital goods are purchased by manufacturers; consumer goods are bought by individuals.
  4. Capital goods are bought and then resold as consumer goods
Explanation
Answer: A - Capital goods create value, while consumer goods do not. Capital goods and consumer goods differ mainly in their use. A car bought to travel around town is a consumer good; a car employed as a taxi is a capital good.
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