A commodity, as defined in Chapter 2, is:
A) something that is produced for the purpose of providing gifts
B) a good that is unique
C) produced for sale in a price-setting market for purposes of making profit
D) something that cannot be exchanged for money
E) a good that is owned by the community as a whole.

Question

Quizplus · Accepted Answer

The definition of a commodity given in Chapter 2 is produced for sale in a price-setting market for purposes of making a profit. This indicates that commodities are goods that are produced for the purpose of being sold in the marketplace for profit. Choice A is incorrect because commodities are not produced for the purpose of providing gifts. Choice B is incorrect because a commodity is not unique - it is a standardized good that can be traded in an exchange market. Choice D is incorrect because commodities are exchanged for money in a price-setting market. Choice E is incorrect because a commodity is not owned by the community as a whole - it is produced by individuals or companies for sale in the marketplace.

A Commodity, as Defined in Chapter 2, Is