Economics: Principles & Policy
14th Edition
ISBN: 9781337696326
Author: William J. Baumol; Alan S. Blinder; John L. Solow
Publisher: Cengage Learning
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Question
Chapter 28, Problem 1DQ
To determine
Transactions in a barter system.
Expert Solution & Answer
Explanation of Solution
In trade, a barter system refers to the exchange of goods and services without the use of a common currency. The party directly exchanges goods and services with other goods and services. The coincidence of need is necessary for this situation.
If a barter system exists in an economy, then students would have to find a college interested in acquiring something that they could produce. Suppose the college does not
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Students have asked these similar questions
If ours were a barter economy, how would you pay your tuition bill? What if your college did not want the goods or services you offered in payment?
Think about the field you plan to go into, and imagine we lived in a society without money, which means we would require a barter system. What challenges would you face? How would these challenges impact your ability to choose what products and services you purchase, as well as what brand or provider you use for those services.
What are the advantages of an economy using money as opposed to a barter system of exchange?
Chapter 28 Solutions
Economics: Principles & Policy
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