This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What is barter? What is a double coincidence of wants? How does the existence of money affect ... (Read 86 times)

asan beg

  • Hero Member
  • *****
  • Posts: 570
on: Jun 29, 2018
What is barter? What is a double coincidence of wants? How does the existence of money affect barter?
 
  What will be an ideal response?

Question 2

Which of the following statements best describes a consumer's budget line?
 
  A) It shows all combinations of goods among which the consumer is indifferent.
  B) It shows the limits to a consumer's set of affordable consumption choices.
  C) It shows the desired level of consumption for the consumer.
  D) It shows the consumption choices made by a consumer.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

brittiany.barnes

  • Sr. Member
  • ****
  • Posts: 321
Reply #1 on: Jun 29, 2018
Answer to Question 1

Barter is the direct exchange of one good or service for another. Barter is inefficient because it requires a double coincidence of wants, that is, the good one person offers for exchange must be the good the trading partner wants and the trading partner's good must be what the first person wants. The existence of money means that we do not need to engage in barter. Instead, we can sell a good or service for money and then use the money to purchase another good or service we desire. There is no necessity for the double coincidence of wants because the seller is willing to accept money from any buyer.

Answer to Question 2

B


asan beg

  • Member
  • Posts: 570
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

tanna.moeller

  • Member
  • Posts: 328
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

The FDA recognizes 118 routes of administration.

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

DNA Is a Double Helix DNA Is a Double Helix
Double-label fluorescence microscopy can visualize the relative distributions of Double-label fluorescence microscopy can visualize the relative distributions of
Double-label fluorescence microscopy can visualize the relative distributions of Double-label fluorescence microscopy can visualize the relative distributions of
This Russian godfather is leaving a Moscow court just after he was acquitted of a double murder. Do ... This Russian godfather is leaving a Moscow court just after he was acquitted of a double murder. Do ...
Denaturation of DNA when native (double-stranded) Denaturation of DNA when native (double-stranded)
Oil supply and prices affect the economies of nations Oil supply and prices affect the economies of nations
Video: Gas exchange - partial pressure, locations, external and internal respiration

For a complete list of videos, visit our video library