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What is one of the obstacles in the barter system mentioned in the text?
What is one of the obstacles in the barter system mentioned in the text?
- Determining an agreed rate of exchange
- Storing wealth in the form of perishable goods
- Finding appropriate exchange partners
- Dividing indivisible goods for exchange (correct)
Why is finding an agreed 'rate of exchange' challenging in a barter system?
Why is finding an agreed 'rate of exchange' challenging in a barter system?
- It involves convincing someone to exchange perishable goods
- It must be acceptable for everyone simultaneously (correct)
- The value of goods is impossible to measure in terms of different goods
- Most goods are indivisible and cannot be evenly exchanged
Why is storing wealth in the form of perishable goods impossible in a barter system?
Why is storing wealth in the form of perishable goods impossible in a barter system?
- Perishable goods cannot be stored for long-term wealth accumulation (correct)
- Finding appropriate exchange partners is time-consuming
- Most goods are indivisible and cannot be evenly exchanged
- It is difficult to measure the value of goods in terms of different goods
What is an example of an indivisible good mentioned in the text?
What is an example of an indivisible good mentioned in the text?
Why was the transfer of wealth a serious issue in the absence of money in the barter system?
Why was the transfer of wealth a serious issue in the absence of money in the barter system?
What is the main disadvantage of the barter system?
What is the main disadvantage of the barter system?
What was the main reason for the shift from the barter system to an alternate system of exchange?
What was the main reason for the shift from the barter system to an alternate system of exchange?
Which characteristic of the barter system is still observed in typical rural areas of underdeveloped countries?
Which characteristic of the barter system is still observed in typical rural areas of underdeveloped countries?
What is the fundamental condition for the barter system to take place?
What is the fundamental condition for the barter system to take place?
What is the purpose of an alternate system for exchange of goods and services?
What is the purpose of an alternate system for exchange of goods and services?
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