Barter System Quiz

What is a need?

• Something you would like to have

• Something you have to have

• Something you can't do without

• Something not absolutely necessary

What is a want?

• Something not absolutely necessary

• Something you can't do without

• Something you have to have

• Something you would like to have

What is barter?

• A gift exchange

• The exchange of goods without the use of money

• A cash transaction

• An unequal exchange

What is an advantage of barter?

• Double coincidence of wants

• Storage of wealth

• Exchange rate

• Specialization in production

What is a disadvantage of barter?

• Specialization in production

• Exchange rate

• Double coincidence of wants

• Storage of wealth

What does barter allow people to do?

• Dispose of surplus and obtain a wider variety of things

• Increase exchange rates

• Store wealth easily

• Specialize in producing only one thing

The divisibility of goods is a disadvantage of barter. Is this statement true or false?

• True

• False

What does the storage of wealth refer to?

• A cash transaction

• An equal exchange

• A disadvantage of barter

• An advantage of barter

What is the direct exchange of goods or services between two parties without a cash transaction called?

• Purchase

• Gift

• Trade

• Barter

What does barter allow people to specialize in?

• Producing the things they could do best

• Storing wealth

• Trading goods for services

• Producing a wide variety of things