Question

disadvantages of barter system with explain​

Answer 1

Answer:

In barter system, there is no common measure of value; therefore, it is difficult to find out any fixed ratio for exchanging goods and services. For example, an individual is willing to buy wheat in exchange of cloth. In such a case, the condition of double coincidence of wants is satisfied.

Answer 2

Answer:

In barter system, there is no common measure of value; therefore, it is difficult to find out any fixed ratio for exchanging goods and services. For example, an individual is willing to buy wheat in exchange of cloth. In such a case, the condition of double coincidence of wants is satisfied.

Explanation:

Drawbacks of Barter Systems:

Lack of double coincidence of wants.

Lack of a common measure of value.

Indivisibility of certain goods.

Difficulty in making deferred payments.

Difficulty in storing value.

Hope it helps you......