The Main Reason Barter Is Extremely Inefficient Is That

question 101

Multiple Choice

The main reason barter is extremely inefficient is that:

• A) you have to find someone who both has what you want and wants what you have.
• B) it can have very high transactions costs associated with it.
• C) people and firms have to spend a lot of time looking for mutually agreeable trades.
• D) All of these are true.

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Definitions:

Emissions Tax

A tax that depends on the amount of pollution a firm produces.

Marginal Social Cost

The additional cost to society as a whole from producing one more unit of a good or service.

Environmental Standard

Regulations set by law or by an organization to limit the amount of pollutants or emissions produced by companies or individuals to protect the environment.

Emissions Tax

A tax levied on the emission of pollutants, designed to incentivize reductions in environmental harm caused by industrial and commercial activities.