Question

Durable goods such as _____________, furniture, and appliances will fluctuate more widely in sales over a business cycle than nondurables such as food and medicine which are necessities.A drinking waterB tooth pasteC gasolineD automobiles

Answer 1

Answer:

D automobiles

Explanation:

In economic theory, a durable good is defined as that product (or service) that once acquired can be used a large number of times over time. Durable goods are those reusable goods and, although they may end up being spent, they are not consumed quickly as non-durable goods.  It is argued that durable goods are those that provide the consumer with a flow of service for a relatively long time, such as automobiles, furniture, homes, etc.  It is not necessary that a durable good be luxurious, for example an armchair is a durable good.  On the other hand, non-durable goods are depleted or consumed completely in the act of satisfying a need, such as food, water or electricity. It should be noted that one of the fundamental characteristics of durable goods is that they are bought today, while the flow of their services extends over time and that the benefits they yield in a period are proportional to the number of units that are removed from the stock, characteristics that resemble it with the investment in productive capital and is defined as a good that is consumed immediately, with a use or a life time of less than 3 years.