which of the following is not a problem in the barter economy?

Assessment: WAEC SSCE - Economics - 1997 (Objective) Subject: Economics

Question 1 Report

which of the following is not a problem in the barter economy?
Answer Details
The problem of inflation is not a problem in a barter economy. In a barter economy, goods and services are exchanged directly without the use of money. Inflation is a general increase in prices of goods and services in an economy over time. Since there is no money involved in a barter system, there cannot be inflation. The other options listed, such as double coincidence of wants, indivisibility of goods and services, bulkiness of commodities, and multiple exchange rates are all challenges faced in a barter economy.

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