Which of the following exemplifies a capital good?

A capital good refers to assets that businesses use in the production process to manufacture products and services that consumers will later use. These goods are not finished products themselves but are utilized to create those finished goods. The machinery in a factory is a quintessential example of a capital good because it is used to produce other products. Its function is to enhance productivity and efficiency in the manufacturing process, providing the necessary tools and equipment that allow businesses to operate effectively.

In contrast, a consumer's phone is considered a consumer good because it is a product purchased for personal use rather than for further production. A salad, on the other hand, is a consumable item that falls into the category of food, which is also a consumer good. A piece of furniture, while it can be used in a business setting, is generally classified as a consumer good as well, as it is typically purchased for direct use rather than to aid in the production of other goods. Thus, the machinery stands out clearly as the best representation of a capital good.