ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In its simplest form, bartering is the exchange of one valuable product for another between two individuals. Person A has two chickens but wants to get some apples; meanwhile, Person B has a bushel of apples but wants some chickens.

Detailed explanation-2: -Barter is an alternative method of trading where goods and services are exchanged directly for one another without using money as an intermediary. It is an old method of exchange. People exchanged services and goods for other services and goods in return.

Detailed explanation-3: -Barter system had many difficulties which were faced by the people like lack of double coincidence of wants, lack of a common unit of value, difficulty of future payments or contractual payments and difficulty of storage of value and transfer of value.

Detailed explanation-4: -A barter system is known as an old method of exchange. This system has been practised for centuries and long before money was introduced. People started exchanging services and goods for other services and goods in return.

Detailed explanation-5: -Trade is the action of buying and selling goods and services. Barter, on the other hand, is the exchange (goods or services) for other goods or services without using money.