ECONOMICS
GDP
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
durable purchases are non-postponable.
|
|
|
durable purchases are postponable.
|
|
|
the producers of nondurables have monopoly power.
|
|
|
producers of durable are highly competitive.
|
Detailed explanation-1: -The production of durable goods varies more than the production of nondurable goods because: durables purchases are postponable.
Detailed explanation-2: -Further, because of their durability they can be stored for longer periods of time. It is due to the use of services of durable goods for a relatively long term that consumers’ demand for them is more volatile, that is, fluctuates very much.
Detailed explanation-3: -Durable goods are consumer goods that have a life span of over three years and are used repeatedly over time. Bicycles and refrigerators are considered durable goods. Nondurable goods are consumed in less than three years, are commonly used one time and include packaged food and drinks or laundry detergent.
Detailed explanation-4: -The production of durable goods is more stable than the production of nondurables over the business cycle. People who work part time, but desire to work full time, are considered to be officially unemployed. The natural rate of unemployment in the United States is about 6 to 8 percent.