What is the problem of Barter System in economics.?
The biggest problem of the barter system in economics is that primitive barter requires those whom you wish to trade with must have something YOU want, and that you in turn have something THEY want. So, for instance, you may see a guy with a tasty hunk of venison, but he doesn’t want the hemp rope you made or the flour your spouse ground from the wheat you grew. Or vice versa… people want what you have, but you’re not interested in any of the things they have to trade. Money was created as a tool to help mankind avoid this dilemma. However, the values of monetary units vary significantly from one locale to another, so physical object money can often have the same drawbacks as barter. To learn more about this and a solution, please visit the webpage below.
