Which of the following best describes commodities?

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The best description of commodities is raw materials for manufacturing. Commodities are typically basic goods used in commerce that are interchangeable with other goods of the same type. They usually consist of raw materials or primary agricultural products that can be bought and sold. Examples include metals like gold and copper, grains like wheat and corn, and energy products like oil and natural gas.

These raw materials form the foundation for producing finished goods and are essential components in the manufacturing process. Their uniformity allows them to be traded on various markets without differentiation, which distinguishes them from high-tech products, processed goods, or luxury items that have distinct features or branding.

High-tech products and luxury items are generally not classified as commodities because they are often value-added items with specific characteristics that appeal to consumers. Processed goods, while they might be derived from commodities, have undergone significant transformation and are sold to consumers in a different format. Therefore, raw materials for manufacturing accurately encapsulate the essence of commodities in the economy.

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