Andrewand Timmy are neighbors.Andrew owns a boat but never uses it.Timmy owns a car that he no longer needs since his son left for college in another state.Andrew needs a car.Andrew and Timmy make an agreement to trade the boat for car.What is the economic term given to this kind of exchange?
A) Barter.
B) Buying and selling.
C) Bargained-for exchange.
D) Replevin.

Question

Quizplus · Accepted Answer

In a barter exchange, goods or services are directly traded without the use of money. In this scenario, Andrew and Timmy are exchanging their assets directly without involving money, hence it is a barter exchange.

Andrewand Timmy Are Neighbors