ShmoopTube

Where Monty Python meets your 10th grade teacher.

Search Thousands of Shmoop Videos


Econ Videos 79 videos

Econ: What is a Production Possibilities Curve?
10 Views

What is a Production Possibilities Curve? The Production Possibilities Frontier Curve (PPF) is a statistical graphic curve that depicts the compari...

Econ: What are Income and Substitution Effects?
8 Views

What are Income and Substitution Effects? Income effects reflects the increases or decreases in total consumption of goods and services in proporti...

Econ: How Do Companies Add Value?
1 Views

How Do Companies Add Value? Companies add value by improving the client or customer experience. This can be achieved by offering better quality ser...

See All

Econ: What are Consumer Nondurables and Services? 3 Views


Share It!


Description:

What are Consumer Nondurables and Services? Consumer non durables are goods with a short lifespan of under 3 years. This can be anything from consumables, such as food and beverages, to detergent or flashlight batteries, to sneakers or razor blades. Consumer Services covers the range of industrial sectors where there are no tangible goods exchanged but labor value and skills. Industries include: travel, transportation, media, finance, leasing, restaurants, and other sectors.

Language:
English Language

Transcript

00:00

And finance Allah shmoop what Our consumer nondurables and services

00:11

a durable and something that lasts a long time You

00:14

know like the pyramids Notre Dame Cathedral Tom Brady and

00:18

their stuff you can buy that lasts a long time

00:21

Like cars refrigerators backhoes of jet engines Who When Elsa

00:25

medieval torture devices for your basement All durable Well their

00:30

products meant toe last at least three years Will you

00:33

buy them today And you're likely to have them for

00:36

the foreseeable future Then you have nondurables Well these You're

00:40

more disposable items you know like toothbrushes razors paper towels

00:44

plastic forks tinder dates L they don't last a long

00:47

time And they tend Teo will not be very expensive

00:50

right Like they're kind of throw away dollars services fall

00:53

under a similar category as nondurables like get a haircut

00:57

And now you're good for a few months Well maybe

01:00

if you're these guys you're good for three years or

01:02

more But usually you'll be back for a service in

01:05

a short period of time Well economists look at the

01:07

numbers related to durable and non durable goods differently The

01:12

goal of economic statistics usually is to read Well what's

01:15

going on in the economy And generally experts feel the

01:18

stats for durable goods say a lot more about the

01:22

economy than those for nondurable goods Right Like you have

01:25

to think really hard about a very expensive durable thing

01:28

You'll keep forever figures for durable and nondurable goods Both

01:31

get reported on a monthly basis but the stat for

01:34

durable goods orders gets far more attention than a similar

01:38

readings for nondurables Even in bad economic times people can

01:41

probably still afford things like raisers and toilet paper Let's

01:44

hope aura as Este Lauder used to say You know

01:47

a new lipstick but they might put off buying that

01:50

new car or refrigerator or you know new pontoon boat

01:54

So in recessions you might see a sharp drop in

01:58

durable goods orders while nondurable goods remain in really stable

02:02

Orders in the nondurable category might dip a little but

02:05

the impact won't be a sharp right Well again people

02:07

can put off those big durable goods purchases if they're

02:10

looking to save money and then not so hopeful right

02:13

now But maybe we'll be in the future something like

02:16

that But the smaller nondurable goods are more immediate kind

02:18

of hard to get along without him for any length

02:20

times people just buy him good times and bad Meanwhile

02:22

the economic performance of these stats are tracked in dollars

02:26

The prices of the average nondurable is much less than

02:28

the average price of a durable good right like razors

02:30

cheaper than washing machines So the falloff in the durable

02:33

goods stats will look even more dramatic So that's how

02:36

things roll You might lament the disposable consumerist society You

02:41

might think that the best thing would be to go

02:43

to a mountaintop somewhere and spend your days meditating But

02:46

when push comes to shove and the economy is in

02:48

crisis well people will always choose their more disposable goods

02:52

It's a stuff that gets us through the day Thank 00:02:54.695 --> [endTime] goodness I do

Related Videos

GED Social Studies 1.1 Civics and Government
39791 Views

GED Social Studies 1.1 Civics and Government

Fake News
11936 Views

How do you tell fake news from real news?

Finance: What is Bankruptcy?
260 Views

What is bankruptcy? Deadbeats who can't pay their bills declare bankruptcy. Either they borrowed too much money, or the business fell apart. They t...

Finance: What is a Dividend?
1774 Views

What's a dividend? At will, the board of directors can pay a dividend on common stock. Usually, that payout is some percentage less than 100 of ear...

Finance: How Are Risks and Rewards Related?
589 Views

How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in...