Poll Results
100%A. It makes trade more complicated, as each person must have what the other person wants, limiting the pool of potential trade partners. ( 1 voter )
0%B. The barter system allows trade to be conducted more efficiently since both parties already know what they need from the transaction.
0%C. It increases the number of exchanges because each person can trade for exactly what they want.
0%D. The system creates value for goods by ensuring that both parties have a direct need for each other’s goods.
Based On 1 Vote
The correct answer is (A). In a barter system, trade depends on the “double coincidence of wants,” meaning each person must have something the other wants. This makes trade complex and time-consuming, as it’s difficult to find suitable partners. Such limitations reduce economic activity and efficiency, highlighting why money was introduced — to act as a common medium of exchange simplifying transactions.