ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It was difficult to get what they wanted and needed.
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The mall was too crowded
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Either A or B
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None of the above
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Detailed explanation-1: -Q. Barter system made it difficult for people to find what they needed and to exchange the same with what they had.
Detailed explanation-2: -Before money was invented, people bartered for goods and services. It wasn’t until about 5, 000 years ago that the Mesopotamian people created the shekel, which is considered the first known form of currency. Gold and silver coins date back to around 650 to 600 B.C. when stamped coins were used to pay armies.
Detailed explanation-3: -Before that time, historians generally agree that a system of bartering was likely used. Bartering is a direct trade of goods and services; for example, a farmer may exchange a bushel of wheat for a pair of shoes from a shoemaker.
Detailed explanation-4: -A system of exchanging goods without using money is known as barter system. The problems associated with the barter system are inability to make deferred payments, lack of common measure value, difficulty in storage of goods, lack of double coincidence of wants.
Detailed explanation-5: -If there were no money, we would be reduced to a barter economy. Every item someone wanted to purchase would have to be exchanged for something that person could provide. For example, a person who specialized in fixing cars and needed to trade for food would have to find a farmer with a broken car.