Question

When a woman makes a dress and takes it to town to trade it for eggs and milk, it is an example of

Answer 1

subsistence economy

Step-by-step explanation:

Answer 2

Barter trade

Step-by-step explanation:

Barter trade is the exchange of goods and services between parties without using a medium of exchange. In barter trade, the transacting parties exchange goods and services for other goods and services. Barter trade was in practice before money become widely accepted as a medium of exchange.

One challenge with barter trade is the double coincidence of wants. A person with good A and needs product B has to find another person with products B and need good A. In this case, the woman has a dress and need eggs and milk. She has to find someone with eggs and milk is willing to trade them for a dress.