What category does a refrigerator fall under?

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Study the essentials of Personal Finance and Time Value of Money. Use flashcards, multiple choice questions, and detailed explanations to prepare effectively for your exam.

A refrigerator is classified as a durable product because it is designed to last for several years, typically more than three years, under normal use. Durable goods are characterized by their longevity, and refrigerators often serve critical functions in households, such as preserving food and beverages, making them essential appliances.

In contrast to consumable products, which are used up quickly (like food items), durable products are meant for long-term use and usually require a larger financial investment. While it may be seen as essential for many, categorizing it strictly as a service or luxury item does not align with the characteristics of durability. Instead, the focus on its longevity and functional importance securely places a refrigerator in the durable product category.

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