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

Question

Quizplus · Accepted Answer

Barter transactions require a double coincidence of wants, which means that each party must have something the other party wants and vice versa. This makes bartering inefficient because it can be difficult to find a person who has what you want and wants what you have at the same time. This limitation is a significant obstacle to the functioning of a modern economy, which is why societies have developed monetary systems to facilitate exchanges.

Barter Is an Inefficient Means of Exchange Because