Capital goods are items used in the production of other goods, including industrial buildings, machinery, and equipment, as well as highways, office buildings, and government installations. These goods significantly determine a country's productive capacity.
Derived demand refers to the demand for capital goods and labor, used in production, which indirectly stems from the demand for the final goods and services that these inputs help to produce.
Indirect production refers to the creation of goods or services that are not directly consumed but are essential for the production of final products or services.
Net Domestic Product (NDP) represents the Gross Domestic Product (GDP) of a country minus the depreciation of its capital goods, providing an indication of capital obsolescence and the investment required to sustain current economic output.
Producer goods, also known as intermediate or capital goods, are newer machinery and equipment bought for business use. These are durable goods used in business production to assist in the production of consumer goods and services.
