Suppose James trades a ginger snap cookie for a chocolate chip cookie.What is James engaging in?

Question

Quizplus · Accepted Answer

James is engaging in barter, which is the exchange of goods or services for other goods or services without the use of money. In this case, he is exchanging a ginger snap cookie for a chocolate chip cookie without the use of money. Comparative advantage refers to a country's ability to produce a good or service at a lower opportunity cost than other countries. Absolute advantage refers to a country's ability to produce a good or service more efficiently than other countries. Division of labor refers to the separation of tasks in a production process among different workers.

Suppose James Trades a Ginger Snap Cookie for a Chocolate