Question

What must two people who want to trade with each other have in a barter economy?

Question 15 options:

pesos


fiat money


federal notes


Mutual coincidence of wants

Answer 1

Fiat Money

Step-by-step explanation:

In a monetary economy, money plays the role of a measure of value of all goods, so their values can be assessed against each other; this role may be absent in a barter economy.

Answer 2

The correct answer is D. Mutual coincidence of wants.

Explanation

Barter is an economic activity in which two people exchange goods or services they own for goods or services they need without using money to negotiate. Barter was common among primitive peoples and the first civilizations as these negotiated with each other to obtain objects that they did not have such as spices, seeds, food, animals, among others. Additionally, the only element necessary to barter is that the two individuals are interested in the good or service of the other individual (a mutual coincidence of wants) so that there can be an exchange. So, the correct answer is D. Mutual coincidence of wants.