Multiple Choice
What is the primary purpose of a protective tariff in economics?
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0. Basic Principles of Economics
Introduction to Economics
Multiple Choice
Which of the following are most likely classified by economists as consumer durable goods?
A
Gasoline
B
Automobiles
C
Bread
D
Milk
Verified step by step guidance1
Step 1: Understand the definition of consumer durable goods. These are goods that provide utility over a long period of time, typically lasting more than three years, and are used repeatedly rather than consumed immediately.
Step 2: Analyze each option based on this definition. Gasoline, bread, and milk are consumed quickly and do not last over time, so they are classified as nondurable goods.
Step 3: Consider automobiles. Automobiles are used repeatedly over several years and provide ongoing utility, fitting the definition of consumer durable goods.
Step 4: Conclude that among the options given, automobiles are most likely classified as consumer durable goods because they last a long time and are not consumed immediately.
Step 5: Remember that consumer durable goods contrast with nondurable goods and services, which are consumed quickly or provide utility only once.
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