Why Is the Barter Method of Exchange NOT More Common

question 8

Multiple Choice

Why is the barter method of exchange NOT more common in the U.S.economy?

• A) The double coincidence of wants frequently occurs.
• B) The level of commodity money is too low.
• C) The level of commodity money is too high.
• D) The double coincidence of wants infrequently occurs.
• E) The amount of money in the economy is easy to measure.

---

Definitions:

Equilibrium

A state in a market where supply equals demand, meaning that there is no tendency for the market price to change unless external factors alter supply or demand.

Specializing

The process by which individuals, businesses, or countries focus on producing a limited range of goods or services, to gain a competitive advantage in terms of efficiency, quality, or cost.

Specialization

Refers to the process by which individuals, firms, or countries focus on producing a limited range of goods or services to achieve greater efficiencies.

Economic Output

The total value of all goods and services produced within an economy over a specific period.