A major source of inefficiency in barter economies is that they require
A)a standard of deferred payment to make trade possible.
B)a double coincidence of wants in exchange.
C)more liquid stores of value than do monetary economies.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

In barter economies, trade can only occur if each party has something the other wants, creating a double coincidence of wants. This often leads to inefficiency as it can be difficult to find someone who has what you want and wants what you have, making trade less frequent and more costly. The other options (A and C) are not necessarily major sources of inefficiency in barter economies.

A Major Source of Inefficiency in Barter Economies Is That