0
Why does the business cycle affect output and employment in capital goods industries and consumer durable goods industries more severaly than in industries producing consumer nondurable?
Aliceouk
Capital goods are durable and last longer than three years, like a car. Non-Durable goods are quickly used up, like toilet paper, and have a low elasticity of demand thus consumers will be consistently consuming nondurable goods which will need to be replaced often. Purchases of capital goods can be delayed, purchases of toilet paper can not.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
What is ancillary industries?
Ancillary industries are companies that manufacture parts for larger companies. Most ancillary industries are considered non essential in the business world.
Describe two features of cottage industries?
Economy an business
What is the most important role of a business?
the most important role is business is to provide employment for people
Why does the business cycle affect output and employment in capital goods and consumer durable goods industries more severely than in industries producing nondurables?
because capital goods and durable goods last, purchases can be postponed. this may happen when recession is forecast. capital and durable goods industries therefore suffer large output declines during recessions. In contrast, consumers cannot long postponed the buying of nondurables such as food; therefore recessions only slightly reduce non-durable output. Also capital and durable good expenditures tend to be "lumpy." Usually, a large expenditure is needed to purchase them, and this shrinks to zero after purchase is made
What is the contribution of small business to the global environment?
creat employment
The industries or sectors of the economy in which business cycle fluctuations tend to affect output the most are?
services and nondurable goods
What is the name of business that provides services to people rather than producing goods?
service industries
Explain the Benefits of linkage industries?
It stimulates the economy and expands business. it creates employment provides business with a ready market where it can channel its product in bulk reduces level of waste or garbage
Where is the citrus industry found in Florida?
It is a big business producing 67 percent of all the oranges consumed in the US.
What kind of Industries are Most Sensitive Indistrives?
The industries where the demand and employment are very prone to business cycle over time are the most sensitive industries. These industries are characterized as cyclic and the degree and timing of economic fluctuations are very wide. Sometimes the industries who recover fastest from recession may also feel the impact of downturn earlier and more strongly than other industries.
What is the difference between business and employment?
Business creates employment. Employment starts with the initial stage of business(public ltd, public sectors, gov jobs etc). Business has its owner and earn as a profit. Employment has a employee of a business and earns as a wages and salary.
What is the business city of industry known for?
The city of Industry is known for its industrial development. They pride themselves on having a strong employment base and available land for industries to purchase or lease.
Is dunston industries in business them make anvill loppers?
is dunston industries in business they make anvill loppers
What is goods producing business?
A good producing business is a business that produces tangible goods to satisfy consumers at aprofit
Why is it often easier to start a service business than a goods-producing business?
Why is it often easier to start a service business than a goods-producing business
Why is it often easier to start a service business than a good producing business?
Why is it often easier to start a service business than a goods-producing business
What is the major source of employment in the UK?
The major source of employment in the UK is the services sector, which includes industries such as financial services, healthcare, retail, and entertainment. It accounts for a significant portion of the country's GDP and employs a large number of people. Manufacturing and construction sectors are also important sources of employment in the UK.
