Statement 1: Barter system can work only when both buyer and seller are ready to exchange each other’s goods
Statement 1: Barter system can work only when both buyer and seller are ready to exchange each other’s goods.
Statement 2: It is very difficult to find double conincidence of wants in real life.
Alternatives:
(a) Both the statements are true
(b) Both the Statements are false
(c) Statement 1 is true and Statement 2 is false
(d) Statement 2 is true and Statement 1 is false
Anurag Pathak Changed status to publish December 15, 2023
Ans – (a)
Explanation:-
Statement 1 is true
In a Barter system, transactions occur with the exchange of goods.
It works when both the buyer and seller are ready to exchange the goods of each other.
for example, A wants to sell his rice against the shoes of the other. But the shoe owner does not need rice. He will agree to exchange the goods.
Statement 2 is true
Double coincidence of wants refers to the situation where the buyer and seller are both in need of goods from each other and ready to exchange.
It is very difficult to find such a situation in real life.
Anurag Pathak Changed status to publish December 15, 2023
