Money is
A) equally efficient as barter as a form of exchange.
B) a less efficient form of exchange than barter.
C) a more efficient form of exchange than barter.
D) None of the above answers is correct.

Question

Quizplus · Accepted Answer

Money is a more efficient form of exchange than barter. With barter, people exchange goods and services directly without using money. However, bartering requires a double coincidence of wants, meaning that both parties must have what the other wants. This can be time-consuming and inefficient. On the other hand, money serves as a medium of exchange, making transactions easier and more efficient. It also allows for greater specialization and division of labor, as people can sell their goods and services for money and use that money to buy what they need.

Money Is