Given below are some statements. Read them carefully and choose the correct statement (s) from the given options.

Statement 1: Capital goods are part of final goods. 

Statement 2: Capital goods are used either for maintenance of the capital stock because there are wear and tear of it, or they are used for addition to the existing capital stock.

Both statements are correct.

The correct answer is option 3: Both statements are correct.

Statement 1: Capital goods are part of final goods. This is correct. Capital goods are a category of final goods. They are goods that are used in the production of other goods and services and are not consumed directly. Examples of capital goods include machinery, buildings, and tools. Although they are not consumed directly like consumer goods, they are considered final goods because they are not transformed further by producers.

Statement 2: Capital goods are used either for maintenance of the capital stock because there are wear and tear of it, or they are used for addition to the existing capital stock. This is also correct. Capital goods can be used for maintaining existing capital stock (which involves replacing or repairing items that have worn out) or for adding to the capital stock (which involves purchasing new equipment or expanding facilities).