Question

the disadvantages of barter system
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Answer 1

Answer:

Here is ur answer mate

Disadvantage # 1. Lack of Double Coincidence of Wants:

The functioning of the barter system requires a double coincidence of wants on the part of those who want to exchange goods or services. It is necessary for a person who wishes to trade his good or service to find some other person who is not only willing to buy his good or service, but also possesses that good which the former wants. For example, suppose a person possesses a horse and wants to exchange it for a cow. In the barter system he has to find out a person who not only possesses a cow but also wants a horse.

The existence of such a double coincidence of wants is a remote probability. For, it is a very laborious and time-consuming process to find out person who want each other’s goods. Often the horse-owner would have to carry through a number of intermediary transactions.

Hope this helps u

Answer 2

Answer:

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.

Explanation:

The functioning of the barter system requires a double coincidence of wants on the part of those who want to exchange goods or services. Another difficulty under the barter system relates to the lack of a common unit in which the value of goods and services should be measured. The barter system is based on the exchange of goods with other goods. It is difficult to fix exchange rates for certain goods which are indivisible. Under the barter system it is difficult to store value. In a barter economy, it is difficult to make payments in future. Another difficulty of the barter system is that it is associated with a production system where each person is a jack-of-all trades. In other words, a high degree of specialization is difficult to achieve under the barter system.