The barter system of exchange is inefficient because
A)"fair" values cannot be defined without the use of money.
B)bargaining power is unequal between rich and poor.
C)the double coincidence of wants may not exist.
D)markets do not exist.
E)exchange partners need to know each other.

Question

Quizplus · Accepted Answer

The barter system requires a double coincidence of wants, which means each party must want what the other party has to offer. This can make exchange difficult and inefficient as finding someone who wants what you have and has what you want may not always be possible. Additionally, without money to define fair values, negotiating trades can be challenging and lead to unequal bargaining power between parties. However, markets can still exist in a barter system, but they may not be as efficient as those in a market-based system with money. Lastly, it is not necessary for exchange partners to know each other in a barter system.

The Barter System of Exchange Is Inefficient Because