Final answer:
Bartering has been practiced for a long time, but it has limitations. Money serves as a more efficient means of exchange in modern societies.
Step-by-step explanation:
The practice of barter (trading one thing for another) has been in existence for a very long time. In the past, items like chickens were bartered for newspapers. Person A had something that person B wanted, and vice versa. So, when person A and person B traded items, they each had something new. Some chemical reactions are like that compounds swap parts, and the products are new materials.
However, while bartering can be beneficial in certain situations, it has limitations. One major limitation is that bartering often requires a double coincidence of wants, where both parties must have something the other person desires. This can make it difficult to arrange trades, especially in a complex economy with a large division of labor. Another limitation is that bartering does not allow for easy future contracts, particularly for perishable goods. For example, it would be challenging for a farmer to trade fresh strawberries for a tractor in six months.
In modern societies, the use of money has largely replaced bartering as a more efficient and convenient means of exchange. Money allows for easier transactions and eliminates the need for a double coincidence of wants. It also enables the establishment of future contracts and facilitates economic growth and development.