Final answer:
A gift is given without expectation of return and often holds sentimental value, while a commodity is a basic good used in commerce, interchangeable with others of the same type, and holds economic value. Gold is an example of commodity money, valued not only for monetary purposes but also for its practical uses in various industries.
Step-by-step explanation:
The difference between a gift and a commodity lies in their exchange process and intended purpose. A gift is typically given without the expectation of something in return, and it often holds sentimental or symbolic value. An example of a gift could be a handmade card or a family heirloom passed down through generations. On the other hand, a commodity is a basic good used in commerce that is interchangeable with other commodities of the same type. Commodities often serve practical purposes and hold economic value as they can be bought and sold in markets.
One example from the text is gold—historically used as a form of commodity money. Apart from its monetary value, it has practical applications in industries such as electronics, aerospace, and jewelry making. Commodity money like gold and salt have intrinsic value due to their utility in other uses beyond being money. On the contrary, fiat money does not have intrinsic value but is used as money because a government decrees it to be so.