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

• A. A loaf of bread
• B. A factory building used to produce products
• C. A movie ticket
• D. A personal laptop purchased for entertainment

Answer: (B)

Capital goods are items used to produce other goods and services, lasting over time and boosting future output. A factory building used to produce products fits this because it provides the capacity for ongoing production and contributes to future production, rather than being consumed in a single use. The loaf of bread is a consumer good, purchased for immediate consumption. A movie ticket is a service consumed now. A personal laptop for entertainment is also a consumer good, used for personal pleasure rather than production. So the factory building stands out as the capital good.