The high transaction costs associated with a barter system refers to the:
A) fact that, often times, these exchanges are taxed by governments.
B) risk associated with having to carry an inventory of goods to trade.
C) high cost associated with finding someone with whom to exchange.
D) cost of drawing up complete contracts.

Question

Quizplus · Accepted Answer

The high transaction costs in a barter system primarily stem from the difficulty and inefficiency of finding a trading partner with the exact opposite needs, known as the double coincidence of wants.

The High Transaction Costs Associated with a Barter System Refers