<P> A capital good is a durable good (one that does not quickly wear out) that is used in the production of goods or services . Capital goods are one of the three types of producer goods, the other two being land and labour, which are also known collectively as primary factors of production . This classification originated during the classical economics period and has remained the dominant method for classification . </P> <P> A society acquires capital goods by saving wealth that can be invested in the means of production . In terms of economics, capital goods are tangible property . People use them to produce other goods or services within a certain period . Machinery, tools, buildings, computers, or other kinds of equipment that are involved in production of other things for sale, are capital goods . The owners of the capital good can be individuals, households, corporations or governments . Any material used to produce capital goods is also considered a capital good . </P> <P> Many definitions and descriptions of capital goods production have been proposed in the literature . Capital goods are generally considered one - of - a-kind, capital intensive products that consist of many components . They are often used as manufacturing systems or services themselves . </P>

What is the collective stock of items which is required for routine functioning of industry