Asked by Diego Dulanto on May 16, 2024
Verified
In an economy that relies on barter, trade requires a double-coincidence of wants.
Double-Coincidence
The situation in a barter system where two parties each possess an item the other wants, enabling an exchange without the need for a medium of exchange like money.
Barter
Trading goods or services directly without the use of money as a medium of exchange.
- Understand the limitations and inefficiencies of barter systems, including the requirement for a double-coincidence of wants.
Verified Answer
BR
BranDee RhoneMay 22, 2024
Final Answer :
True
Explanation :
In a barter economy, for a transaction to occur, each party must have what the other wants, making trade more complicated due to the need for this double-coincidence of wants.
Learning Objectives
- Understand the limitations and inefficiencies of barter systems, including the requirement for a double-coincidence of wants.