Question

In the book One Red Paperclip, the author Kyle MacDonald trades his way from one red paperclip to a house in a series of fourteen exchanges. What is the economic term given to this kind of exchange?

Answer 1

The economic term given to the kind of exchange described in the book 'One Red Paperclip' is bartering. Bartering is the direct exchange of goods or services without the use of money.

Step-by-step explanation:

The economic term given to the kind of exchange described in the book 'One Red Paperclip' is bartering. Bartering is the direct exchange of goods or services without the use of money. It involves trading one item for another item of equal value. In the book, the author starts with a red paperclip and goes through a series of exchanges, trading the paperclip for items of increasing value until eventually obtaining a house. Each exchange is based on finding someone who values the current item more than the paperclip, creating a mutually beneficial trade. This process exemplifies the concept of bartering and the potential for value creation through exchange.