why is barter system considered difficult to trade a commodity give any three reasons
Answers
Answer:
1.Double Coincidence of Wants
2. Lack of a Standard Unit of Account
3. Impossibility of Subdivision of Goods
4. Lack of Information
It reflects how barter system is considered difficult to trade a commodity give any three reasons.
Explanation: Bartering is the act of exchanging one commodity or service for another without the use of a monetary medium of exchange. In many aspects, a bartering economy varies from a monetary one.
The main distinction is that commodities or services are transferred promptly, and the deal is reciprocal, which means that each participant receives what they desire or need in an equal amount to what they are contributing in exchange.
A barter economy's main flaw is its inefficiency. The first issue is that, in the case of the lumber seeker, he or she may be unable to locate a lumber supplier who is in need of what the lumber seeker has to offer.
The second issue is ensuring fair trades. How does one determine a reasonable egg-to-television conversion rate, for example? The exchange of commodities and services becomes more manageable in a monetary system.