Which of the following is considered a durable good?
A. medical care
B. food
C. clothing
D. a washing machine
The correct answer and explanation is:
The correct answer is D. a washing machine.
A durable good is defined as a product that is intended to last for a long time, typically three years or more. Durable goods are not consumed or used up quickly and can be repaired or maintained to extend their lifespan. A washing machine is a prime example of a durable good because it is designed to function over an extended period, usually several years, before it needs to be replaced.
In contrast, other items listed are not durable goods:
- A. Medical care: This is a service, not a physical product, and services are not considered durable goods. While healthcare services can have long-lasting effects on a person’s well-being, they are not durable goods because they are consumed over time.
- B. Food: Food is considered a consumable good, not a durable one. Consumables are products that are used up relatively quickly and are replaced often. Food, being perishable, falls into this category.
- C. Clothing: While clothing can last a long time, it is generally not classified as a durable good. Clothing is typically considered a semi-durable good because it can wear out with repeated use, although some high-quality clothing can last longer.
Durable goods like washing machines are key to economic measurements such as GDP because their purchase reflects consumer confidence and long-term spending. Consumers tend to purchase durable goods when they feel financially secure since these items require a significant investment. Unlike consumable goods, which are purchased more regularly, durable goods are purchased less frequently but represent a larger commitment in terms of both money and the length of their useful life.