Question 1

What was one of the primary limitations of the barter system?

Accepted Answer

The double coincidence of wants

Answer

It allowed for easy trade between countries

Answer

It involved the use of currency

Answer

It was universally accepted

Question 2

Which of the following commodities is often cited as an early form of currency that emerged from barter?

Accepted Answer

Gold

Answer

Sand

Answer

Water

Answer

Question 3

Why did societies shift from barter to a monetary system?

Accepted Answer

To simplify trade and increase efficiency

Answer

To eliminate currency

Answer

To encourage more direct exchanges

Answer

To maintain bartering as the only form of trade

Question 4

In which scenario is barter most likely to be effective?

Accepted Answer

In situations when the economy collapses

Answer

In a global online marketplace

Answer

In a large urban city with diverse populations

Answer

During times of economic stability

Question 5

What is one advantage of a barter system?

Accepted Answer

It allows for direct exchanges of goods and services

Answer

It is always efficient

Answer

It guarantees equal value between trades

Answer

It eliminates the need for a marketplace

Question 6

What is a common problem faced in a barter economy?

Accepted Answer

Valuation of goods can vary widely

Answer

It requires complicated contracts

Answer

It relies on a central government

Answer

Everyone accepts the same goods

Question 7

What key factor led to the decline of the barter system?

Accepted Answer

The introduction of money as a medium of exchange

Answer

The development of trade agreements

Answer

The increase in agricultural production

Answer

The rise of barter clubs

Question 8

What is a disadvantage of using barter in trade?

Accepted Answer

It can be difficult to find a matching need between traders

Answer

It eliminates the need for negotiation

Answer

It is always fast and efficient

Answer

It guarantees the value of goods

Question 9

Which of the following is NOT a characteristic of money?

Accepted Answer

Changes in value frequently

Answer

Durability

Answer

Portability

Answer

Divisibility

Question 10

Which characteristic of money allows it to retain value over time?

Accepted Answer

Store of value

Answer

Scarcity

Answer

Medium of exchange

Answer

Divisibility

Question 11

Which characteristic of money refers to how easily it can be carried and used in transactions?

Accepted Answer

Portability

Answer

Durability

Answer

Scarcity

Answer

Stability

Question 12

What characteristic of money addresses its ability to be widely accepted for purchases?

Accepted Answer

Acceptability

Answer

Portability

Answer

Durability

Answer

Divisibility

Question 13

Which of the following needs is focused on security and safety?

Accepted Answer

Shelter

Answer

<P>A vehicle</P>

Answer

Fame

Answer

Wealth

Question 14

Which of the following is an example of token money?

Accepted Answer

A barter item like cattle

Answer

A gold coin

Answer

An old $1 note

Answer

A silver bar

Question 15

Providing just enough to survive but not improve one's way of life is known as direct production

Accepted Answer

false

Answer

true

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