Which of the following is a term for physical goods that are bought and sold?

• A. Externalities
• B. Utilities
• C. Commodities
• D. Services

Answer: (C)

Verified step by step guidance

1. Understand the definitions of each term: Externalities refer to side effects or consequences of economic activities that affect third parties; Utilities represent the satisfaction or benefit derived from consuming goods or services; Services are intangible activities provided to consumers.
2. Recognize that the question asks specifically for a term that describes physical goods that are bought and sold.
3. Recall that 'Commodities' are standardized physical goods that are traded in markets, such as agricultural products, metals, or energy resources.
4. Eliminate options that do not refer to physical goods: Externalities, Utilities, and Services do not represent physical goods.
5. Conclude that the correct term for physical goods bought and sold is 'Commodities'.