Question

what are the five problem of barter system​

Answer 1

1. Double Coincidence of Wants

2. Lack of a Standard Unit of Account

3. Impossibility of Subdivision of Goods

4. Lack of Information

5. Production of Large and Very Costly Goods not Feasible

Answer 2

•people exchanged goods and services for other goods and services in return is known as barter system

•absence of double coincidence of wants:

the person who wish to sell one product and likes to get another product.the exchange will function properly only if he finds a person who can satisfy his needs

•lack of common measure of values: there is no common measurinh on rod for measuring value under barter system.so proper accounting cannot be done.

•lack of proper store of value:in this system commmodities are exchanged for commodities; most of the commodities are perishable.

•problem of divisibility:some commodities are indivisible.