A disadvantage of the barter system is that
A)no trade occurs.
B)people must produce all their own food, clothing, and shelter.
C)the opportunity to specialize is greatly reduced.
D)gold is the only unit of account.

Question

Quizplus · Accepted Answer

In a barter system, people typically exchange goods or services directly without the use of money. This means that individuals would have to produce everything themselves, which greatly reduces the opportunity for specialization. For example, a farmer who specialized in growing crops may not be able to exchange his crops for clothing or shelter if the people who made those goods did not need crops. This lack of specialization can limit economic growth and efficiency in the long run. A, B, and D are all incorrect because trade does occur in a barter system, people do not have to produce all their own food and shelter, and gold is not necessarily the only unit of account.

A Disadvantage of the Barter System Is That