Final answer:
Bartering involves the direct exchange of goods or services without using money, such as a farmer trading strawberries for a tractor. Bartering can be limiting, which is why money was developed as a medium of exchange and store of value to facilitate easier trade.
Step-by-step explanation:
An example of bartering is when two parties exchange goods or services without the use of money. For instance, imagine a situation where a farmer has a fresh crop of strawberries and wants to obtain a tractor from another person. Instead of using money, the farmer offers a quantity of strawberries in exchange for the tractor. This direct trade of goods illustrates the barter system.
Bartering can sometimes be practical in small economies or close-knit communities; however, it has limitations, especially concerning perishable goods, the difficulty of entering into future contracts, and challenges related to the storage of value. This is one reason why societies developed a monetary system, where money serves as a widely accepted medium of exchange and a store of value, making trade more efficient and allowing for economic growth.