Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Which of the following is true?
a) Some Consumer goods also undergo wear and tear.
b) Capital goods are durable where as consumer goods are non-durable.

Options:

Both a and b are true

a is true, b is not

b is true, a is not

Both a and b are false

Correct Answer:

a is true, b is not

Explanation:

The correct answer is Option b: a is true, b is not

Statement a : Some Consumer goods also undergo wear and tear. This is correct.This statement is true. Consumer goods, especially those used frequently, such as appliances, vehicles, and electronics, can indeed undergo wear and tear over time. For example, a car's tires wear down with use, and a refrigerator's components may degrade over years of operation.


Statement b: 
Capital goods are durable where as consumer goods are non-durable. This is incorrect. Capital goods are indeed generally more durable than consumer goods because they are used to produce other goods and services rather than being consumed directly. However, not all consumer goods are non-durable. Some consumer goods, like furniture, appliances, and electronics, can be durable and long-lasting as compared to articles such as food or even clothing. They also undergo wear and tear with gradual use and often need repairs and replacements of parts, i.e., like machines they also need to be preserved, maintained and renewed. That is why we call these goods consumer durables.