The Development Of Barter Flashcards
1
Q
How did barter come about?
A
No individual could produce all their needs and the system barter resulted.
2
Q
What is barter?
A
The exchange of one thing for another without the use of money
3
Q
What are the advantages of the barter system?
A
It is a simple system, no over or under production, no international trade problems, no concentration of economic power, personal and marital resources are ideally utilised, reaps the benefits of specialization.
I never needed nobody’s permission really
(INNNPR)
4
Q
What are the disadvantages of the barter system?
A
A double coincidence of wants, an exchange rate, divisibility of goods and storage of wealth
(AADS)
