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Questions
State two difficulties of barter system.
State two demerits (or difficulties) of barter system of exchange.
Answer in Brief
Solution
- Barter exchange requires double coincidence of wants which is very difficult.
- Under barter exchanges, we face the problem of division and sub-division of goods.
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Inconveniences Or Difficulties of Barter System
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RELATED QUESTIONS
Read the following dialogue between two people:
| Sita: | I want 1 kg of potatoes. |
| Rani: | What will you give in exchange? |
| Sita: | I can give you 2 litres of milk in return for the potatoes. |
| Rani: | I don't need milk, I want a pair of shoe. |
Which of the following problem is being faced by Sita and Rani in their exchange process?
Which of the following is not a problem of barter system of exchange?
How does money resolve the problem of double coincidence of wants?
Enumerate any two difficulties faced under the barter system of exchange.
Explain how money can overcome the difficulties of double coincidence of wants.
What is meant by double coincidence of wants?
