*All capital goods are producer goods, but all producer goods are not capital goods*. Explain with suitable example.
Producer goods include all those goods which are used in the process of production. They include?
1) Goods used as raw materials in production
2) Goods used as fixed assets in production
On the other hand, capital goods include only those goods which are used as fixed assets in production. Therefore, we can say that all producer goods are capital goods but all capital goods are not producer goods.
1) Goods used as raw materials in production
2) Goods used as fixed assets in production
On the other hand, capital goods include only those goods which are used as fixed assets in production. Therefore, we can say that all producer goods are capital goods but all capital goods are not producer goods.