Final answer:
Bartering is the direct exchange of goods or services between parties without the use of money, requiring a double coincidence of wants and often leading to inefficiencies in modern economies.
Step-by-step explanation:
The simple, nonmonetized exchange of goods or services between two parties is commonly known as bartering. In a barter system, individuals trade items or services directly without the intermediary use of money.
This type of exchange requires a double coincidence of wants, meaning each party has to want exactly what the other is offering. The inefficiency of this system in modern advanced economies is evident .
When considering the complex division of labor and the multitude of goods and services available. Bartering can also lead to challenges if a voluntary exchange affects a third party, who is neither the buyer nor the seller, such as in externalities in traditional economic models.