The correct option is 2 and 3 only.
Explanation
Goods in an economy are classified based on their durability and end-use. Consumer goods are purchased for direct satisfaction of wants, whereas capital goods are used for the production of other goods and services.
Statement-wise Analysis
- Statement 1 is Incorrect: Consumer durables are goods that are not extinguished by immediate consumption and have a relatively long lifespan (e.g., automobiles, refrigerators, televisions). Goods like food and clothing, which are consumed immediately or over a short period, are classified as non-durable (or semi-durable) consumer goods.
- Statement 2 is Correct: Similar to capital goods, consumer durables have a long useful life and undergo wear and tear (depreciation) over time. Consequently, they require repairs, maintenance, and eventual replacement. However, unlike capital goods, they are used for final consumption by households rather than for aiding production processes.
- Statement 3 is Correct: In National Income Accounting, consumer durables are treated as final goods because they are purchased for final consumption by households. They have crossed the production boundary and are not used as intermediate inputs to produce other goods.
Key Takeaway: Consumer durables are final consumption goods with a long lifespan that undergo depreciation, distinct from non-durable goods (immediate consumption) and capital goods (production assets).