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laila [671]
3 years ago
11

What economic system is characterized by an exchange of one product for another A.Currency B.Barter C.Loan D.Free market

Social Studies
2 answers:
Brut [27]3 years ago
7 0

The correct answer is B: BARTER

Bartering is the exchange of material goods or services for other objects or services, and differs from the usual sale in that it does not intermediate the money as a representative of the value in the transaction. The contract whereby two people access a barter is called a swap.

labwork [276]3 years ago
7 0

<u><em>The correct answer is option B. </em></u>

<u><em>Bartering occurs when two or more parties – such as individuals, businesses and nations – exchange goods or services  without the use of money.  An example of barter is salt provided in exchange for sugar. </em></u>

<u><em>Economists distinguish barter from gift economies in many ways; barter, for example, features immediate reciprocal exchange, not delayed in time. It usually takes place on a bilateral basis, but may be multilateral (i.e., mediated through a trade exchange). </em></u>

<u><em>In most developed countries, barter usually only exists parallel to monetary systems to a very limited extent. </em></u>

<u><em>According to the father of modern economics , Adam Smith, markets and economies pre-existed the state, and consequently should be free of government regulation. </em></u>

<u><em>He claimed that money was not the creation of governments. In his opinion, markets emerged out of the division of labour, by which individuals began to specialize in specific crafts and so had to depend on others for subsistence goods.  </em></u>

<u><em>These goods were first exchanged by barter. Specialization depended on trade, but was hindered by the "double coincidence of wants" which barter requires, i.e., for the exchange to occur, each participant must want what the other has. </em></u>

<u><em> </em></u>

<u><em> </em></u>


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