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[18] VanHalen: Practice Questions I'll try to answer question 40 even though I thought I was just
understanding the reasoning behind question 37. Thinking about
question 40 for a while, I think an answer may lie in the definition
of what a commodity is: something which is produced for sale or
exchange. In order to qualify as a commodity, the item must be
produced for sale or exchange. I don't know why a person would go to
the trouble of producing anything if they didn't think that they could
fetch some sort of a return in the market for the product whether it
was sold or exchanged. This is where I think the inherent value comes
in; the person may not know what their product will be exchanged for
or what price it may get, but they do feel that it will get SOMETHING
even if it is a very small amount of exchanged good or monetary
return. There has to be some sort of inherent value just because of
the fact that it qualifies to be a commodity and can be bought or
sold. If for some reason the product is so worthless that it can't be
exchanged or sold then I don't think it qualifies to be a commodity.
As for question 37, Chacci answered well, and it builds on this
answer. Just the fact that it is a commodity, and can be exchanged or
sold, means that it has some value. What value it fetches in the
market can change due to tastes, technology or percieved use. big or
small. |
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