Read the two statements and choose the correct option.
I. Under barter, the price of every good has to be stated in terms of every other good.
II. Under barter, wealth is easy to store because goods keep their value forever.

Only ICorrect answerYour answerOnly IICorrect answerYour answerBoth I and IICorrect answerYour answerNeither I nor IICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

With no common unit, wheat has a price in cloth, in rice, in salt, and so on. I is true.
Many goods spoil or cost a lot to store, so II is false.

Ten questions from Money and Its Functions, at your own pace.

Ten questions from Money and Its Functions, at your own pace.

Read the two statements and choose the correct option.I. Under barter, the price of every good has to be stated in terms of every other good.II. Under barter, wealth is easy to store because goods keep their value forever.