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

Industry that used capital goods and create demand for those products. Industry that produces capital goods which in turn are used in the production of other products. Industry that produces capital goods which in turn are used in the production of other products that are not incorporated into final product. None of the above

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

Capital Goods refer to products that are used in the production of other products. These include machine tools, industrial machinery, process plant equipment, construction & mining equipment, electrical equipment, textile machinery, printing & packaging machinery etc.