In a barter economy, transactions rely on the direct exchange of goods and services without a common medium of exchange like money. This system requires finding a party that has the exact goods you need and who simultaneously wants the goods you have, which can be highly inefficient and time-consuming.

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In a Barter Economy

Question 14

Multiple Choice

In a barter economy

A) one could easily find another with which to make a transaction.
B) the only money used is gold.
C) an extraordinary amount of time and energy would be spent simply arranging the goods one needed to trade.
D) none of the above.

Correct Answer: