A barter economy
A) cannot be a market economy.
B) is an economy without monetary exchange.
C) is an economy with no business firms.
D) is not a competitive economy.
E) is a competitive economy.

Question

Quizplus · Accepted Answer

A barter economy is an economy where goods and services are exchanged without the use of money. Therefore, monetary exchange is absent in a barter economy, making option B the correct choice. Although a barter economy may not involve traditional business firms, this is not a defining characteristic, making option C incorrect. Additionally, a barter economy can be both competitive and non-competitive, making options D and E incorrect. However, a barter economy cannot be a market economy because it lacks the use of a common medium of exchange, which is essential in a market economy.

A Barter Economy