Which of the following is the most appropriate definition of the "Capital Goods" industry?

Industry that produces capital goods which in turn are used in the production of other products.

The correct answer is option 2: Industry that produces capital goods which in turn are used in the production of other products.

Capital goods are assets used in the production of other goods and services, such as machinery, equipment, and tools. The capital goods industry focuses on producing these items, which are then used by other industries to manufacture final products. Thus, capital goods are not directly consumed by end-users but are essential for production processes

• Option 1 is incorrect because it refers to industries that use capital goods, not those that produce them.
• Option 3 is too restrictive because capital goods can also be incorporated into the production of final products (e.g., machinery parts).