In economic terms, items like refrigerators and cars that provide service over several years are known as

• A. Discretionary expenditure
• B. Total revenue
• C. Consumer durables
• D. Price elasticity of demand

Answer: (C)

Durable goods are items that provide service over several years. Refrigerators and cars last a long time and are used for many years, so they are classified as consumer durables. This focus on how long the item lasts distinguishes them from other types of spending. Discretionary expenditure refers to spending on non-essentials, not the nature of the good itself. Total revenue is the income a firm earns from selling goods and services, not a property of the goods. Price elasticity of demand measures how sensitive quantity demanded is to price, which is about responsiveness, not how long the item lasts.