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Question
Which of the following is not a problem of barter system of exchange?
Options
Store of value
Double Coincidence of Wants
Unit of Account
Unemployment
Solution
Unemployment
Explanation:
Unemployment is not an issue with the barter system for exchanges. The other options, such as Store of Value, Double Coincidence of Wants, and Unit of Account, cause many issues with the barter system. However, unemployment is an economic issue that has nothing to do with the mechanics of barter-based exchanges.
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?
State two difficulties of barter system.
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?
