Evolution of Business by Fariha Fahim

Producing goods for ones own usage is known as,

• Barter system

• Self sufficiency

• Trade

• Business

Exchanging good for another good between two people is,

• Barter system

• Self sufficiency

• Use of money

• E- Commerce

(a)   acts as a medium of Exchange

What is wrong about the drawbacks (weaknesses) of the barter system?

• Two parties agree to buy and sell each others commodities

• No common unit to measure the value of the good

• Difficult to store for future exchange purposes

• Metals were used as medium of exchange

Examples for plastic money,

• Coins

• Debit card

• Bitcoin

• Credit card

Satish has a mobile phone and wants to exchange it for a laptop.

Gajan has a laptop and wants to exchange it for a tablet.

What problem are they facing?

• Lack of double coincidence of wants.

• Lack of a common measure of value.

• Indivisibility of certain goods.

• Difficulty in storing value.

Mass production resulted by the (a)  

Amara is a farmer who produced 100 mangoes and he asks Sirisena for his cow in exchange of 100 mangoes.

But Sirisena is willing to exchange the cow only for 200 mangoes.

What problem are they facing?

• Lack of double coincidence of wants.

• Lack of a common measure of value.

• Indivisibility of certain goods.

• Difficulty in storing value.

Buying and selling goods via internet is known as (a)  

Malani buys a handbag from Daraz online store. She makes a bank transfer to settle the payment.

What type of money is being used by Malani?

• Plastic money

• Crypto currency

• Currency notes

• Electronic money