Durable Goods - Explained
What is a Durable Good?
Written by J. Mance Gordon
Updated at April 17th, 2024
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What are Durable Goods?
The goods which are not consumed or destroyed by use and last for a long time are called durable goods. Home appliances, types of machinery, cars all fall under the category of durable goods. Generally, consumer goods which last for 3 or more years are considered to be durable goods. Foods, cosmetics, toiletries, cigarettes, beverages are all non-durable goods as those that perish with use. Durables, on the other hand, have an extended product life and you can use it for long without consuming the whole thing. Durable goods are not required to be purchased as frequently as the nondurables. It is better to spend the income in buying durable, capital, and investment goods, as they retain their economic value for longer. Increased expenditure on durables indicates sustainable economic growth. The wealth of an individual is preserved by spending more on durables.
Related Topics
- What is a Product?
- What Types of Product are There?
- Durable Goods
- How are Goods Different from Services?
- What Components do Products Include?
- What is Product Quality?
- Perceived Value of a Product
- Why is Product Packaging Important?
- White Label Product
- What is Product Warranty?
- Innovation Adoption Curve
- Product Life Cycle
Other Related Topics
- Macroeconomics
- Macroeconomic Frameworks
- Macroeconomic Policy Tools
- Productivity Economics
- One-Third Rule
- Gross Domestic Product (GDP)
- Durable and Non-Durable Goods
- Weightless Economy
- Intermediate and Final Goods or Services
- Nominal GDP
- Converting Nominal to Real GDP
- GDP Inflator
- Nominal GDP Price Index
- Measuring GDP
- Gross National Product
- Net National Product
- Factor Income
- Gross National Income
- Expenditure Method
- The Problem of Double Counting GDP
- Double Counting
- Why is Tracking Real GDP Important?
- Convert Currencies with Exchange Rates
- Convert GDP to a Common Currency
- Per Capita GDP
- GDP Per Capita
- GDP as a Measure of Society Well-Being
- Limitations of GDP as a Measure of the Standard of Living