Are chickens and and cows examples of capital goods?
Capital goods are items used in the creation of other goods. Because chickens create eggs and cows make milk, are they consumer goods?
Ordinarily cows and chickens are not considered capital goods. Also note the difference between consumer and capital goods.
http://en.wikipedia.org/wiki/Capital_good
http://www.investopedia.com/terms/c/capitalgoods.asp
Chickens and cows are not examples of capital goods, but rather examples of consumer goods. Capital goods are typically non-consumable items, such as machinery and equipment, that are used in the production process. They are not directly consumed or used up in the production of other goods.
However, in the case of chickens and cows, while they do produce eggs and milk, they themselves are considered consumer goods. Chickens and cows are living beings that are bred, raised, and cared for as livestock to provide products like eggs and milk. These products are then consumed by humans, making them consumer goods. The chickens and cows themselves are not used in the creation or production of any other goods, so they do not fall into the category of capital goods.
To determine whether something is a capital good or a consumer good, it is essential to understand its primary purpose in the production process. If the item is a means to produce other goods and is not directly consumed or used up in the process, it can be considered a capital good. If the item is directly consumed by individuals or used for personal enjoyment, it is typically classified as a consumer good.