The barter system. - SS1 Commerce Past Questions and Answers - page 1
What is the barter system?
A method of exchanging goods or services without money
A system of using standardized units of measurement
A system of centralized economic planning
What is one advantage of the barter system?
It allows for easy comparison of values
It simplifies transactions
It provides a universally accepted medium of exchange
What is the challenge of the barter system?
Standardized measure of value
Double coincidence of wants
Easy negotiations and quick transactions
What is the main reason societies transitioned from barter to money?
To simplify transactions and make trade more efficient
To eliminate the need for goods and services
To establish a centralized economic planning system
In which contexts does the barter system still exist today?
Local or informal economies
Global financial markets
Online retail platforms
What is the double coincidence of wants in the context of the barter system?
What was one of the key advantages of transitioning from the barter system to money?