Barter is extremely inefficient because:
A) you have to find someone who both has what you want and wants what you have.
B) it is associated with very high transaction costs.
C) people and firms have to spend a lot of time looking for mutually agreeable trades.
D) All of these are true.

Question

Quizplus · Accepted Answer

All three options are true. Barter requires a double coincidence of wants, which means you have to find someone who has what you want and wants what you have. This can be difficult and time-consuming, leading to high transaction costs for both parties involved. As a result, people and firms often spend a lot of time looking for mutually agreeable trades, making barter an inefficient system.

Barter Is Extremely Inefficient Because