Editing Capital (economics) (section)

=== Differences from consumer goods ===
People buy capital goods to use as static resources to make other goods, whereas [[consumer goods]] are purchased to be consumed.

For example, an automobile is a consumer good when purchased as a private car.

Dump trucks used in manufacturing or construction are capital goods because companies use them to build things like roads, dams, buildings, and bridges.

In the same way, a chocolate bar is a consumer good, but the machines that produce the candy are capital goods.

Some capital goods can be used in both production of consumer goods or production goods, such as machinery for the production of dump trucks.

Consumption is the logical result of all economic activity, but the level of future consumption depends on the future capital stock, and this in turn depends on the current level of production in the capital-goods sector. Hence if there is a desire to increase consumption, the output of the capital goods should be maximized.<ref>EconomicJournal. Mar66, Vol. 76 Issue 301, p70-83. 14p. 1 Graph.</ref>