Barter exchange tends to be inefficient because
A) gold is difficult to transport.
B) it limits the time and effort required for trade.
C) it can be time consuming to find a double coincidence of wants.
D) a standardized unit of value can be difficult to find in a primitive economy.

Question

Quizplus · Accepted Answer

Barter exchange requires each party to have a product or service that the other party wants and vice versa, which can be difficult and time-consuming to achieve. This is known as the double coincidence of wants. As a result, barter exchange can be inefficient compared to using a standardized unit of value, such as money.

Barter Exchange Tends to Be Inefficient Because