Final answer:
Cars, computers, and non-IKEA furniture are classified as durable goods (D), while clothes and food are nondurable goods (ND). For GDP considerations, the value of final goods and salaried work are included (I), while volunteer work, informal market activity, and the value of vacation time are not included (NI) because they do not generate measurable economic transactions within the formal economy.
Step-by-step explanation:
To identify the below as durable (D) or nondurable (ND) goods:
Car D
Clothes ND
Computer D
Furniture (not IKEA) D
Food ND
Now to identify the items as included (I) or not included (NI) in GDP:
Volunteer Work NI
Value of Final Goods I
Informal (Black) Market Activity NI
Value of Vacation Time NI
Salaried Work I
The terms durable and nondurable goods describe the longevity of goods. Durable goods like cars, computers, and furniture have a long life span, whereas nondurable goods such as clothes and food are typically consumed or used up in the short term.
These classifications are vital for the calculation of GDP because they factor into understanding consumer spending patterns and economic health. Goods included in GDP are those that are part of the formal economy and contribute to the national income, whereas activities like volunteer work or black market transactions do not get recorded in GDP as they do not directly generate a monetary transaction within the legal economy.