A Nondurable Good Is Defined as

question 151

Multiple Choice

A nondurable good is defined as

• A)an item consumed in one or a few uses.
• B)an item that usually lasts over an extended number of uses.
• C)an item that lasts at least one year without becoming obsolete.
• D)a product purchased only for the use of ultimate consumers.
• E)a product used in the production of other products.

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Definitions:

Utility Function

A mathematical representation that ranks an individual's preferences over a set of goods and services, showing the level of satisfaction or utility those goods or services provide.

Interest Rate

The percentage of principal charged by the lender for the use of its money or the return earned on deposit funds.

Consumption

The use of goods and services by households or individuals, typically measured to understand economic activity and consumer behavior.

Utility Function

A representation of a consumer's preferences, modelling satisfaction obtained from consuming goods and services.