What is defined as a commodity?

A commodity is best defined as a basic good used in commerce that is interchangeable with others of the same type. This definition captures the essence of what constitutes a commodity: items that are standardized and can be easily exchanged or traded. Commodities often include natural resources or agricultural products, such as crude oil, gold, wheat, and coffee, which have uniform quality and can be traded on commodity markets. The interchangeability of these goods means that one unit of a commodity is essentially the same as another unit, making them equivalent in terms of value and use in transactions.

The other choices involve different concepts. Luxury items are not interchangeable in the same way and typically denote uniqueness and exclusivity, which distinguishes them from commodities. An exclusive product produced by a company suggests a level of differentiation and branding that is characteristic of goods that are not commodities. Lastly, financial instruments for investment cover a range of products such as stocks and bonds, which do not fit the definition of a commodity since they are not tangible goods used in commerce on the same level as commodities. Thus, option B accurately reflects the nature and characteristics of what commodities are within economic contexts.