Okay kiddo, let's talk about capital goods! Basically, capital goods are things that people use to make other things.
Imagine you want to make a cake, but you need some special tools like a mixer, an oven, measuring cups, and bowls. These tools are capital goods - they help you to make something that you want.
Similarly, when companies want to make products, they also need capital goods like machines, tools, and equipment. These things might be used to create a product or to help with the manufacturing process.
For example, if a company wants to make cars, it needs tools to drill holes in metal, machines to cut metal into the right shape, and conveyor belts to move the car parts around. All of these things are capital goods that the company needs to make the cars.
So, in a nutshell, capital goods are things that are used to make other things. They are important because they help people and companies create things that they want or need.