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Questions and Answers
Why is storage of perishable commodities difficult in the barter system?
Why is storage of perishable commodities difficult in the barter system?
Storage of perishable commodities is difficult in the barter system because it can result in loss of value.
What are the challenges associated with the barter system introduced by Mesopotamian tribes?
What are the challenges associated with the barter system introduced by Mesopotamian tribes?
The challenges include high search and transaction costs, difficulty in storing perishable commodities resulting in loss of value, and the need for double coincidence of wants which doesn't encourage specialization and division of labour.
What is the impact of the barter system on specialization and division of labour?
What is the impact of the barter system on specialization and division of labour?
The barter system doesn't encourage specialization and division of labour due to the need for double coincidence of wants.
What is the title of the book?
What is the title of the book?
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Who is the author of the book?
Who is the author of the book?
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When was the revised and enlarged edition of the book published?
When was the revised and enlarged edition of the book published?
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Where is the publisher located?
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What is the price of the book?
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Study Notes
Challenges of Storage in Barter System
- Perishable commodities like fruits, vegetables, and dairy require specific storage conditions to prevent spoilage.
- Difficulty in storing food items limits the ability to trade them effectively in a barter system.
- Rapid deterioration of perishable goods poses challenges for both traders and consumers, leading to waste.
Challenges Faced by Mesopotamian Tribes
- Mesopotamian tribes dealt with the direct exchange of goods and services, leading to difficulties in finding equitable trades.
- Lack of a universally accepted medium of exchange made transactions cumbersome and time-consuming.
- Difficulty in determining the value of diverse goods and services created barriers to trade.
Impact on Specialization and Division of Labor
- Barter systems may limit the extent of specialization as individuals must produce a variety of goods for trade.
- Specialization is hindered by the constraints of directly exchanging products, reducing overall efficiency in labor divisions.
- As trades rely on mutual needs, the potential for innovative production is stifled, impacting economic development.
Book Details
- Title: Not specified in the text.
- Author: Not specified in the text.
- Revised and Enlarged Edition Publication: Not specified in the text.
- Publisher Location: Not specified in the text.
- Price: Not specified in the text.
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Description
Test your knowledge on the challenges of the barter system. Learn about the high search and transaction costs, difficulties in storing perishable commodities, and the lack of specialization and division of labor. Find out how these challenges affected the Mesopotamian tribes and their use of the barter system.
