Barter Requires a Double Coincidence of Wants

question 15

Multiple Choice

Barter requires a double coincidence of wants.This means that:

• A)at least two traders must demand a commodity.
• B)any two traders involved in a transaction must have money.
• C)each trader must demand at least two commodities.
• D)either of the two trades involved in a transaction must have money.
• E)when two traders are involved in a transaction each trader must want what the other has to offer.

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Definitions:

Trade Benefit

The advantages a country gains from engaging in international trade, such as access to a wider variety of goods and services, economies of scale, and increased market competition.

Produce Alfalfa

The process of cultivating and harvesting alfalfa, a perennial flowering plant used primarily as fodder for livestock.

Comparative Advantage

The capability of a nation or person to generate a specific product or service with a lesser opportunity cost compared to others.

Trade Benefit

The advantage gained by countries, companies, or individuals from engaging in international trade, including increased economic output, efficiency, and consumer choice.