What are the inherent disadvantages of a barter system?
In a barter system, the buyer may not have appropriate items of value to the seller. Barter is also inefficient because several trades may be necessary to receive the desired goods. In other words, barter requires a double coincidence of wants. Barter is also extremely expensive over long distances. It is time-consuming because of difficulties in determining the value of the product that is being offered for barter.
You might also like to view...
The policy actions by the Fed that would cause the money supply to decrease is
A key assumption made when a supply schedule is constructed is that
A. the only factors that matter in determining supply are price and quantity. B. firms only want to sell a certain amount of a product. C. supply is too important to be left to the marketplace. D. only price and quantity vary, all other determinants of supply are held constant. E. demand has a positive slope.
Cartels tend not to be long-lived because of ?the Prisoner's Dilemma.
Answer the following statement true (T) or false (F)
In the above figure, if the market was a single-price monopoly rather than perfectly competitive, which area shows the transfer of consumer surplus from consumers to producers?
A) A + B B) C + D C) C + D + E D) E + H