Which of the following is an example of a capital good?

• A. A smartphone purchased for personal use
• B. A loaf of bread sold in a bakery
• C. A delivery truck used by a logistics company
• D. A shirt bought by a consumer

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the definition of a capital good. A capital good is a physical, man-made resource used in the production of other goods and services, rather than for direct consumption.
2. Step 2: Analyze each option to determine if it is used for production or for personal consumption. For example, a smartphone purchased for personal use is a consumer good because it is used directly by the consumer.
3. Step 3: Consider the loaf of bread sold in a bakery. This is a final consumer good, as it is intended for consumption, not for producing other goods.
4. Step 4: Evaluate the delivery truck used by a logistics company. Since the truck is used to facilitate the delivery of goods and services, it is a capital good because it helps in the production or distribution process.
5. Step 5: Review the shirt bought by a consumer. This is a consumer good because it is purchased for personal use, not for producing other goods or services.