The Biggest Disadvantage of a Barter System Compared to One

question 79

Multiple Choice

The biggest disadvantage of a barter system compared to one that uses money is that

• A)it is difficult to find goods to trade in a barter system that satisfy the needs of society.
• B)a standardized unit of account cannot exist in a barter system.
• C)all commodities are difficult to transport and therefore inefficient for exchange.
• D)each trade requires a double coincidence of wants.
• E)commodities are difficult to use as a store of value.

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Definitions:

Memory Function

The processes involved in encoding, storing, and retrieving information.

Hindsight Bias

The tendency to believe, after an event has occurred, that one would have foreseen or predicted the outcome.

Egocentric

Having or regarding the self or the individual as the center of all things.

Stereotypical

Relating to a widely held but fixed and oversimplified image or idea of a particular type of person or thing.