The greater the degree of specialization in the economy,
A)the easier it is to discover a double coincidence of wants
B)the more feasible a barter system is
C)the less likely it is that monetary exchange will develop
D)the harder it is to negotiate an exchange rate between all pairs of goods
E)the more likely it is that individual consumers are self-sufficient

Question

Quizplus · Accepted Answer

When there is a high degree of specialization in the economy, each individual produces a narrow range of goods and services, which means that they will require a larger number of goods and services than what they can produce themselves. This makes the negotiation of exchange rates between all pairs of goods more difficult. Therefore, option D is the best answer.

The Greater the Degree of Specialization in the Economy