The Barter System of Exchange Is Inefficient Because

question 120

Multiple Choice

The barter system of exchange is inefficient because

• A)"fair" values cannot be defined without the use of money.
• B)bargaining power is unequal between rich and poor.
• C)the double coincidence of wants may not exist.
• D)markets do not exist.
• E)exchange partners need to know each other.

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Definitions:

Equilibrium Price

The price at which the quantity of goods supplied equals the quantity demanded.

Tennis Balls

Small, usually yellow, hollow rubber balls covered in a fibrous felt, used in the game of tennis.

Tennis Racquets

Sporting equipment consisting of a handled frame with an open hoop across which a network of strings is stretched, used to hit a tennis ball.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing to buy at each price point.