What Do Barter Houses Do

question 82

Multiple Choice

What do barter houses do?

• A) They specialize in trading goods acquired through barter arrangements.
• B) They negotiate barter arrangements with countries that accept the U.S. currency as a countertrade.
• C) They specialize in bartering with third countries for unused raw materials.
• D) They direct bartered goods to the World Trade Organization for its approval.
• E) They review disputes in barter arrangements at the request of the International Court of Justice.

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Definitions:

Inelastic

A characteristic of goods whose demand or supply is not significantly affected by changes in price.

Nondiscriminating Monopolist

A monopolist who charges the same price for all units of output sold, not engaging in price discrimination between different consumers.

Elastic

Describes a situation where the quantity demanded or supplied of a good or service changes significantly when its price changes.