EBK ECONOMICS: PRINCIPLES AND POLICY
EBK ECONOMICS: PRINCIPLES AND POLICY
13th Edition
ISBN: 8220100605932
Author: Blinder
Publisher: Cengage Learning US
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Chapter 29, Problem 1DQ
To determine

Transactions in a barter system.

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Explanation of Solution

In trade, a barter system refers to the exchange of goods and services without the use of a common currency. The party directly exchanges goods and services with other goods and services. The coincidence of need is necessary for this situation.

If a barter system exists in an economy, then students would have to find a college interested in acquiring something that they could produce. Suppose the college does not demand the product offered by the student, then they would try to find another college, which has a demand for the available products in the hands of the students.

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