what is barter system? why it is failed?
Answers
Answer:
In such a case, barter system involves wastage of time and efforts. (b) Common Measure of Value: Constitutes one of the important reasons for the failure of the barter system. 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.
Answer:
Barter System is the exchange between 2 or more parties, without the use of currencies, but through goods and services.
Explanation:
In a barter system, for example - if a wheat trader was in need of leather, he'd trade 2 loads of wheat for 1 load of leather. This system didn't value the products and there wasn't any fixed threshold level. Due to the absence of a common measure of value, it was considered a waste of time and effort.