Which of the following statements is true of a barter system?
A)In a barter system economy,no rates of exchange are defined.
B)In a barter system economy,there are as many different rates of exchange as there are pairs of goods to trade.
C)In a barter system economy,rates of exchange are expressed in goods per dollar.
D)In a barter system economy,rates of exchange are expressed in dollars per good.
E)In a barter system economy,rates of exchange are denominated in gold or silver.

Question

Quizplus · Accepted Answer

In a barter system economy, there are no fixed rates of exchange as in a monetary economy. Instead, rates of exchange are determined by the relative value of the goods being exchanged, and there can be as many different rates as there are pairs of goods to trade. This can lead to inefficiencies and complications in the barter process.

Which of the Following Statements Is True of a Barter