Explanation:

- Option 1: Capital goods are indeed used in the production process for several years. They include machinery, tools, and equipment that help in manufacturing other goods.

- Option 2: Incorrect, as capital goods are not typically used for just a few years; they are intended for long-term use.

- Option 3: Capital goods often involve depreciation over time, which means they lose value as they are used.

- Option 4: Since capital goods are used for several years and involve depreciation, this option is correct.

Correct Answer: Option 4 - Both (a) and (c)