What is the main disadvantage of a barter system?
A. Lack of physical goods
B. Difficulty in transporting goods
C. No agreement on value
D. Double coincidence of wants
Answer (2)
The correct answer is letter D. Double coincidence of wantsIn a barter system, both people involved in the trade must want what the other person has. This is called a “double coincidence of wants.” For example, if you are a fisherman who wants rice, you need to find a farmer who wants fish. If the farmer wants salt instead, you cannot trade. This makes trading hard and time-consuming.
The correct answer is D. Double coincidence of wants.In a barter system, for a trade to happen, both people must want what the other has at the same time. This is called a "double coincidence of wants." It's hard to find someone who wants exactly what you’re offering and who also has what you want. That makes trading difficult.
