I was wondering what differences and relations are between goods and commodities, from economics perspective?
In economics and accounting, a good is
a product that can be used to satisfy
some desire or need. More narrowly but
commonly, a good is a tangible
physical product that can be
contrasted with a service which is
intangible. As such, it is capable of
being delivered to a purchaser and
involves the transfer of ownership
from seller to customer. For example,
an apple is a tangible good, as
opposed to a haircut, which is an
(intangible) service. One usage that
preserves the distinction between
goods and services by including both
is commodity. In microeconomics, a
‘good’ is often used in this inclusive
sense of the word (Milgate, 1987).
Does the highlighted sentence mean
that commodities consist of goods
A commodity is a good for which there
is demand, but which is supplied
without qualitative differentiation
across a market.1
Does it say that a commodity is some
special kind of good? Is this contrary to Part 1?
The term “good” in this sense is kind of a squishy term. A commodity is simply something that can be bought and sold. Futures contracts are commodities, as are financial instruments which may be abstract in the extreme. Often these are called products. The Gross Domestic Product includes goods and services. But goods are definitely distinct from services. Whoever said commodities are goods is probably restricting the definition to to material things, but that’s a distinction of convenience, not an absolute definition.