In early economies, goods were often exchanged through a barter system. What is a barter system?
A) prices are agreed after bargaining or negotiation between buyer and seller.
B) goods are exchanged through a central clearing house called a "barter."
C) goods are exchanged for goods without the use of money.
D) goods are exchanged at fixed prices set by the government.

Question

Quizplus · Accepted Answer

A barter system is a method of exchange where goods are directly exchanged for other goods or services without the use of money. For example, a farmer might exchange a cow for clothing from a textile maker, rather than selling the cow for money and then using that money to buy clothing. The two parties agree on the relative value of the goods being traded and exchange them accordingly.

In Early Economies, Goods Were Often Exchanged Through a Barter