The problem with the barter system is:

a. Lack of standardized measures of value: In a barter system, there is no common measure of value; it is difficult to decide how many units of a good should be traded for another good. This lack of a standardized measure of value makes trade difficult and inefficient.

b. The exchanged goods may be of poor quality: There is no guarantee of the quality of goods exchanged in a barter system. One party may end up with goods that are inferior in quality, which is unfair.

c. It does not lack double coincidence of wants: In a barter system, trade can only occur if there is a double coincidence of wants, which means that each party wants what the other party has. This is a major limitation of the barter system because it is difficult to find such a coincidence.

d. Services cannot be substituted for goods: In a barter system, it is difficult to exchange services for goods. For example, if a person offers a service like teaching or medical care, it is difficult to determine how many goods should be given in exchange for these services. This makes the barter system inefficient for trading services.

Question

The problem with the barter system is:

a. Lack of standardized measures of value: In a barter system, there is no common measure of value; it is difficult to decide how many units of a good should be traded for another good. This lack of a standardized measure of value makes trade difficult and inefficient.

b. The exchanged goods may be of poor quality: There is no guarantee of the quality of goods exchanged in a barter system. One party may end up with goods that are inferior in quality, which is unfair.

c. It does not lack double coincidence of wants: In a barter system, trade can only occur if there is a double coincidence of wants, which means that each party wants what the other party has. This is a major limitation of the barter system because it is difficult to find such a coincidence.

d. Services cannot be substituted for goods: In a barter system, it is difficult to exchange services for goods. For example, if a person offers a service like teaching or medical care, it is difficult to determine how many goods should be given in exchange for these services. This makes the barter system inefficient for trading services.

Knowee AI · Accepted Answer

The problem with the barter system is:

a. Lack of standardized measures of value: In a barter system, there is no common measure of value; it is difficult to decide how many units of a good should be traded for another good. This lack of a standardized measure of value makes trade difficult and inefficient.

b. The exchanged goods may be of poor quality: There is no guarantee of the quality of goods exchanged in a barter system. One party may end up with goods that are inferior in quality, which is unfair.

c. It does not lack double coincidence of wants: In a barter system, trade can only occur if there is a double coincidence of wants, which means that each party wants what the other party has. This is a major limitation of the barter system because it is difficult to find such a coincidence.

d. Services cannot be substituted for goods: In a barter system, it is difficult to exchange services for goods. For example, if a person offers a service like teaching or medical care, it is difficult to determine how many goods should be given in exchange for these services. This makes the barter system inefficient for trading services.

A problem with the barter system is that .a.A lack of standardised measures of valueb.The exchanged goods are of poor quality.c.does not lack double coincidence of wantd.Services cannot be substituted for goods

Question

Solution

Similar Questions

Upgrade your grade with Knowee