Recent

Show all results for ""

Feature Overview

Ace your exams with our all-in-one platform for creating and sharing quizzes and tests.

Quizzes

Create quizzes and tests automatically from your content using AI.

Flashcards

Automatically turn your notes into digital flashcards.

Share, Export & Embed

Share with classmates or export to Excel and your learning management system.

Stats & Reporting

Auto-grading quizzes and tests with detailed stats and reports.

Mobile Apps

The smarter way to study – wherever you are.

Pricing

Search...

5 Questions

2 Views

The Barter System

Created by

@CongenialOlive

Questions and Answers

What is one of the inherent limitations of the barter system?

No problem of divisibility

Ease of storage for perishable goods

Abundance of common measure of value

Lack of double coincidence of wants (correct)

Why did the barter system become obsolete?

The barter system had no problem of divisibility

The barter system was too efficient for the growing civilization

Human wants multiplied and the barter system could not meet the increased demands (correct)

The barter system had a common measure of value for all goods

What was a problem of storage under the barter system?

There was no problem of storage

Storage was unnecessary in the barter system

Commodities exchanged were all non-perishable

Most exchanged commodities were perishable (correct)

Why was there a lack of common measure of value in the barter system?

<p>There was no common measuring unit of account</p> Signup and view all the answers

Why is lack of double coincidence of wants considered a limitation of the barter system?

<p>Exchange cannot take place unless there is a double coincidence of wants</p> Signup and view all the answers

Study Notes

Limitations of the Barter System

One of the inherent limitations of the barter system is the lack of double coincidence of wants, where two parties have to simultaneously want what the other has to offer.
The barter system became obsolete because of its limitations, which made trade difficult and inefficient.
A problem of storage under the barter system was the need to store perishable goods until a suitable trading partner was found.
The lack of a common measure of value in the barter system made it difficult to determine the value of goods and services.
The lack of double coincidence of wants meant that trade could only take place when both parties had what the other wanted, making trade limited and infrequent.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Test your knowledge of the barter system with this quiz! Explore the challenges and limitations of bartering and see if you agree with the statement that there are no difficulties in the barter system.