Finished goods can be divided into two categories:
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Capital Goods are products that help increase the future production capacity of a country, for example, equipment, machines, plows, and buildings.
The end users of capital goods are usually firms. -
All products that are not capital goods are consumer goods. Consumer goods are made for day-to-day use in order to fill immediate needs, like food, or long- term needs, such as clothing, jewelry, televisions, and refrigerators. Consumer goods are usually used by ordinary people.
