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Multiple Choice
A beverage bottling plant would be an example of which of the following?
A
A capital good
B
A consumer good
C
A service
D
A natural resource
Verified step by step guidance
1
Step 1: Understand the definitions of the options given. A capital good is a physical, man-made resource used to produce other goods and services, such as machinery or buildings.
Step 2: Recognize that a consumer good is a finished product intended for direct consumption by consumers, like a beverage or a snack.
Step 3: Identify that a service is an intangible activity or benefit provided to consumers, such as haircuts or banking.
Step 4: Know that a natural resource is a raw material obtained from nature, like water, minerals, or timber.
Step 5: Analyze the beverage bottling plant as a physical facility used to produce beverages, which means it is a man-made resource used in production, fitting the definition of a capital good.