If you have 2 meters cloth and you want wheat against it, then how much wheat you should get. Which drawback of Barter Exchange is highlighted?
‘If you have 2 meters cloth and you want wheat against it, then how much wheat you should get. ‘Which drawback of Barter Exchange is highlighted?
(a) Lack of medium of Exchange
(b) lack of store of value
(c) Lack of Measure of Value
(d) None of these
Anurag Pathak Changed status to publish December 15, 2023
Ans – (c)
Explanation:-
It refers to a lack of a common unit of account. It means, there is no common unit to measure all commodities.
In the given case, we have to measure all other commodities with cloth.
Again we have to make a list price of wheat comparing all other commodities.
It lacks a common measure of value
For example, money is a common measure of unit. All commodity prices can be listed in money.
Anurag Pathak Changed status to publish December 15, 2023
