Suppose that in a barter economy Tom bakes bread and Hans produces chocolates. Tom wants chocolates but Hans doesn't like bread, so Hans is unwilling to trade with Tom. Tom's problem is an example of which problem associated with a barter system?
A) Too much specialization
B) Not enough prices
C) The law of diminishing returns
D) The double coincidence of wants problem

Question

Quizplus · Accepted Answer

The problem faced by Tom is the double coincidence of wants problem, where two parties need to have a mutual desire for each other's goods in order to trade. In this case, Tom wants chocolates but Hans doesn't want bread, making it difficult for them to engage in exchange.

Suppose That in a Barter Economy Tom Bakes Bread and Hans