Accounting for Durable Goods: Consumption vs. Investment

An individual makes several purchases: a new laptop with an expected lifespan of five years, a monthly bus pass for commuting, a concert ticket for a show next week, and a pair of running shoes designed to last for about six months of regular use. Which of these purchases is an example of a durable good?

Household Spending Behavior During Economic Uncertainty

Critique of Durable Goods Classification in Economic Accounts

Analyze each of the following household expenditures and match it to the correct economic category based on its characteristics.

A family's purchase of a new refrigerator is recorded as an investment in national income accounts because it is a tangible item that provides a stream of services over several years.

Analyzing Household Spending Volatility

Postponability of Consumer Purchases

In economics, consumer goods such as automobiles and refrigerators, which have a long useful life and are not consumed in a single use, are categorized as ______ goods.

Arrange the following consumer purchases in descending order of durability, from the item with the longest expected useful life to the item with the shortest.

Comparing Household Expenditures