The following text is about political economy.
The concept of "fictitious commodities," developed by Karl Polanyi, describes land, labor, and money—things treated as commodities in market economies though not produced for sale. Labor is inseparable from human beings; land is nature; money is a social convention. Polanyi argued that treating these as pure market commodities destroys the social fabric, provoking "protective counter-movements" from society. Environmental regulations, labor laws, and financial controls represent such counter-movements. This "double movement" between market expansion and social protection, Polanyi suggested, defines the political dynamics of market societies.
Why does Polanyi consider labor, land, and money "fictitious commodities"?
They are produced specifically for market sale
They are treated as commodities but were not created for sale
They exist only in fictional stories
Markets never actually trade in them
Correct Answer: B
Choice B is the correct answer. Fictitious commodities are "things treated as commodities in market economies though not produced for sale"—labor, land, and money are treated as commodities but are human existence, nature, and convention.
- Evidence: Treated as commodities; not produced for sale.
- Reasoning: The commodity form is imposed, not intrinsic.
- Conclusion: The fiction is treating non-commodities as commodities.
Choice A is incorrect because the opposite is true—they weren't produced for sale. Choice C is incorrect because they are real, just not naturally commodities. Choice D is incorrect because they are actively traded as if commodities.