The figure given below represents the PPC in two nations

Question

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4
 
-Barter can best be defined as:
A)the direct exchange of one good for money. 
B)the direct exchange of money for a good. 
C)the direct exchange of goods and services without the use of money. 
D)the direct exchange of labor services for wages. 
E)the payment of interest on a savings account.

Quizplus · Accepted Answer

Barter refers to the direct exchange of goods and services without the use of money. This is depicted in the PPC diagram where the two nations trade their respective goods without involving money in the transaction.