Which of the Following Factors Causes the Barter System to Be

question 120

Multiple Choice

Which of the following factors causes the barter system to be inefficient?

• A) Its cost of transaction is too low.
• B) The cost associated with information search is too low.
• C) It requires a double coincidence of wants.
• D) It requires high liquidity.

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Definitions:

Safety Inventory

Extra inventory held to protect against stockouts caused by variations in demand or supply, serving as a buffer to ensure customer service levels.

Supplier Services

The range of services provided by suppliers to support their products, including delivery, installation, and maintenance.

Bulk Purchase

The acquisition of goods in large quantities, often at a reduced price, typically for the purpose of resale or large-scale operations.

Value/Cost Scale

A ratio or comparative metric assessing the benefit (value) received relative to the resources (cost) expended.