Differentiate between consumer goods and producer goods.

Question

Difference between Consumer Goods and Producer Goods:Consumer GoodsProducer Goods(i) Consumer goods are those goods whic...

Accepted Answer

Difference between Consumer Goods and Producer Goods:Consumer GoodsProducer Goods(i) Consumer goods are those goods whic...

Consumer Goods	Producer Goods
(i) Consumer goods are those goods which satisfy a consumers wants directly.	(i) Producer goods are those goods which satisfy the demand of producers. These goods are used in the production of goods and services.
(ii) Consumer goods do not promote capital formation or investment.	(ii) Producer goods promote capital formation.
(iii) Pen, pencil, radio, furniture etc. are the examples of consumer goods.	(iii) Machine, tools and implements are the examples of producer goods.