Barter systems are considered inefficient because

Question

Quizplus · Accepted Answer

A) Barter systems prove difficult to establish rates of exchange between goods and services because there is no standard unit of measurement or value, making it challenging to determine a fair exchange rate.

B) In order for a barter exchange to occur, there must be a coincidence of wants - that is, both parties must have something that the other wants.

C) Many commodities in a barter system are perishable, which can lead to waste and inefficient exchanges.

Therefore, all of the above options make barter systems inefficient.

Barter Systems Are Considered Inefficient Because