Changing from a barter economy to a money economy can reduce transaction costs.

Question

Quizplus · Accepted Answer

In a barter economy, goods and services are exchanged for other goods and services without the use of money. This can lead to high transaction costs as it may be difficult to find someone who has what you want and wants what you have to offer. In a money economy, however, goods and services are exchanged for money, which serves as a medium of exchange. This makes transactions easier and more efficient, reducing transaction costs.

Changing from a Barter Economy to a Money Economy Can