PRC-3 · Chapter 17 · Question 12 of 20
Before money, people used the barter system. However, a farmer trading wheat for a cow had to find someone who had a cow AND wanted wheat. This massive limitation is known as the:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Double coincidence of wants
Explanation
The double coincidence of wants is the core flaw of barter, requiring two parties to perfectly desire each other's specific goods simultaneously.
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