Questions and Answers
What is one of the obstacles in the barter system mentioned in the text?
Dividing indivisible goods for exchange
Why is finding an agreed 'rate of exchange' challenging in a barter system?
It must be acceptable for everyone simultaneously
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
What is an example of an indivisible good mentioned in the text?
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Why was the transfer of wealth a serious issue in the absence of money in the barter system?
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What is the main disadvantage of the barter system?
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What was the main reason for the shift from the barter system to an alternate system of exchange?
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Which characteristic of the barter system is still observed in typical rural areas of underdeveloped countries?
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What is the fundamental condition for the barter system to take place?
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What is the purpose of an alternate system for exchange of goods and services?
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