Capital goods are one of the three types of producer goods, the other two being land and labor, which are also known collectively as primary factors of production.
There were claims that producer goods were favored over consumer goods, causing consumer goods to be lacking in quantity and quality in the shortage economies that resulted.
Local cooperatives or state supply and marketing bureaus sold most agricultural producer goods, including chemical fertilizers and insecticides, to households at set prices.
The major defining characteristic of a market economy is that decisions on investment and the allocation of producer goods are mainly made through markets.
It was charged with the primary responsibility for the allocation of producer goods to enterprises, a critical state function in the absence of markets.
In classical economics, land is considered one of the three factors of production (also sometimes called the three producer goods) along with capital, and labor.