Barter is an inefficient means of exchange because
A) barter transactions require a double coincidence of wants.
B) barter only occurs in relatively primitive economies.
C) in a barter transaction only one party needs to want what the other party has to sell.
D) demand will not necessarily equal supply.

Question

Quizplus · Accepted Answer

Barter transactions require both parties to have something the other wants in order for an exchange to occur. This requirement of a "double coincidence of wants" makes barter inefficient compared to a monetary system where individuals can use currency to exchange for goods or services without needing to find someone who has what they want and also wants what they have to offer.

Barter Is an Inefficient Means of Exchange Because