A piece of equipment used in production, such as an oven in a bakery, is classified as which type of good?

• A. Consumer
• B. Public
• C. Capital
• D. Intermediate

Answer: (C)

Capital goods are tools of production—durable assets used to create other goods and services. An oven in a bakery fits this because it’s a long‑lasting piece of equipment that enables the bakery to turn raw materials like flour and yeast into bread over many uses. It isn’t bought for direct personal satisfaction (that would be a consumer good), nor is it a final product sold to customers. It also isn’t an intermediate input that becomes part of the final bread itself; rather, it facilitates the production process. Public goods don’t apply here. So the oven is a capital good.