What are the problems of barter system
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there is a conflict between the two people if what one wishes to buy is not the same as what another wishes to sell . Important note that there is no proper or right values for the goods like one cannot exchange gold for a copper utensil.
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Answer:In Barter system, goods and services are exchanged for other goods and services. In this type of transaction, money does not play any role. For eg. Exchange old furniture with computer.Difficulties in Barter system:
- Problems of double coincidence of wants.
- Lack of common measure of value.
- Difficulties in storage of goods.
- Indivisibility of certain goods.
- Problem of making differ payment.
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