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During war times most of the productive resources are diverted for the production of
capital goods
consumer goods
weapons and arms
service
Capital goods and consumer goods are classified based on how they are used. A capital good is any good used to help increase future production. Consumer goods are any goods used by consumers and have no future productive use.The same physical good could be a consumer good or a capital good. It just depends on how it will be used. An apple bought at a grocery store and immediately eaten is a consumer good. An identical apple bought by a company to make apple juice is a capital good. The difference, again, lies in its utilization.
By: honey kaundal ProfileResourcesReport error
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