What Is a Problem with Barter That Makes It So

question 46

Multiple Choice

What is a problem with barter that makes it so difficult to use?

• A)Barter requires use of only fiat money.
• B)Barter omits the store of value role for money.
• C)Individuals have to produce something to trade with.
• D)Barter is very efficient but illegal because it avoids taxation.
• E)Barter requires a double coincidence of wants.

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Definitions:

Marginal Utility

The additional satisfaction or utility gained from consuming one more unit of a good or service.

Total Utility

The total satisfaction received from consuming a certain amount of goods or services.

Marginal Utility

The change in satisfaction or benefit derived by consuming an additional unit of a good or service.

Utility

In the field of economics, the complete enjoyment or benefit derived from the consumption of a product or service.