Barter System and Its Drawbacks

Barter System and Its Drawbacks

Assessment

Interactive Video

Business, Social Studies

6th - 10th Grade

Hard

Created by

Aiden Montgomery

FREE Resource

The video tutorial explains the barter system, where goods are exchanged directly without money. It highlights the system's limitations, such as the need for a double coincidence of wants, lack of a common unit of value, challenges in future payments, and difficulties in storing and transferring value. These drawbacks led to the evolution of money, which provides a standard unit of account, facilitates future payments, and allows easy storage and transfer of value.

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10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary concept of the Barter System?

Exchange of services for money

Exchange of goods for services

Exchange of money for goods

Exchange of one commodity for another

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why was the Barter System limited in its use?

It was too modern

It was too simple

It was very difficult

It was too expensive

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main problem associated with the Double Coincidence of Wants?

Finding a common unit of value

Transferring value over long distances

Matching the wants and availability of two people

Storing wealth in terms of commodities

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In the Barter System, what must occur simultaneously for an exchange to happen?

Sale and purchase

Production and consumption

Loan and repayment

Storage and transfer

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is missing in the Barter System that makes it hard to measure the value of commodities?

A future payment standard

A transfer mechanism

A storage facility

A common unit of value

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does money solve the problem of valuing goods and services?

By being universally accepted

By being bulky

By being difficult to transfer

By being perishable

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is it difficult to repay loans in the Barter System?

Because of the lack of a standard for future payments

Because of the lack of a common unit of value

Because of the perishable nature of commodities

Because of the difficulty in transferring value

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