The Biggest Disadvantage of a Barter System Compared to One

question 32

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)commodities are difficult to use as a store of value.
• D)each trade requires a double coincidence of wants.
• E)commodities are difficult to transport and therefore inefficient for exchange.

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Definitions:

Interval Scale

A type of measurement scale that shows order and has equal intervals but lacks a true zero point, such as temperature in Celsius.

Measurement

The process or act of determining the size, length, or amount of something, typically using a specific device or system of notation.

Variable

An element, feature, or factor that is likely to vary or change.

Observations

Data collected or measured during an experiment or survey.