Antwort Is money better than bartering? Weitere Antworten – Is bartering better than money

Is money better than bartering?
Bartering makes it easier to negotiate but lacks the flexibility of a currency system. Many small businesses accept non-monetary payments for their services, and the IRS treats these bartered transactions the same as currency transactions for tax-reporting purposes.Answer and Explanation:

Money is better than the barter system because; it is durable, portable, interchangeable, easily divisible into smaller units, and is universally recognized by most people.Money evaluates every commodity and service with a convincing value. A person who doesn't want anything in exchange will also be ready to work for someone for money. Money is a durable thing and lasts many years, even if kept unused. Money makes the economy grow faster.

Why did money replace the barter system : In a barter economy, exchange is not possible unless there is mutual coincidence of wants. And all goods cannot be easily divided for exchange. Money on the other serves as a medium of exchange and allows a person to sell their product and buy whatever they wish to.

Is bartering a good idea

Advantages of Bartering

There are a number of reasons why a barter economy or being able to barter is beneficial. As mentioned above, there may be times where cash is not readily available, but goods or services are. Bartering allows individuals to get what they need with what they already own.

What is a disadvantage of bartering : You can read about the Monetary System – Types of Monetary System (Commodity, Commodity-Based, Fiat Money) in the given link. Other disadvantages of the barter system are inability to make deferred payments, lack of common measure value, difficulty in storage of goods, lack of double coincidence of wants.

But cash offers other important functions and benefits:

  • It ensures your freedom and autonomy.
  • It's legal tender.
  • It ensures your privacy.
  • It's inclusive.
  • It helps you keep track of your expenses.
  • It's fast.
  • It's secure.
  • It's a store of value.


With barter there will be less specialization because of the difficulty of overcoming the coincidence of wants. Without money there would be less trade and therefore less specialization and productive inefficiency. Therefore, from the same quantity of resources, LESS would be produced .

What are 5 disadvantages of bartering

Drawbacks of Barter Systems:

  • Lack of double coincidence of wants.
  • Lack of a common measure of value.
  • Indivisibility of certain goods.
  • Difficulty in making deferred payments.
  • Difficulty in storing value. Was this answer helpful

Having money makes it possible for you to start a business, build a dream home, pay the costs associated with having a family, or accomplish other goals you believe will help you live a better life. Money gives you security.Money is not always required to get something you need/want. You could build trust through trade. If you have something that is in demand/popular, you can get more than the cost you paid for it by trading.

The problems associated with the barter system are inability to make deferred payments, lack of common measure value, difficulty in storage of goods, lack of double coincidence of wants. You can read about the Monetary System – Types of Monetary System (Commodity, Commodity-Based, Fiat Money) in the given link.

What are the pros and cons of bartering : The pros and cons of barter

Barter allows people to specialize in what they do best and to trade for the things they need. But the wants of buyers and sellers might not coincide, and the value of bartered goods and services might be difficult to determine.

Why money is the most powerful : Money provides the service of reducing transaction cost, namely the double coincidence of wants. Money originates in the form of a commodity, having a physical property to be adopted by market participants as a medium of exchange.

Is money a good or service

Money is something that people use every day. We earn it and spend it but don't often think much about it. Economists define money as any good that is widely accepted as final payment for goods and services.

Drawbacks of Barter Systems:

  • Lack of double coincidence of wants.
  • Lack of a common measure of value.
  • Indivisibility of certain goods.
  • Difficulty in making deferred payments.
  • Difficulty in storing value. Was this answer helpful

The limitations of barter are often explained in terms of its inefficiencies in facilitating exchange in comparison to money. It is said that barter is 'inefficient' because: There needs to be a 'double coincidence of wants' For barter to occur between two parties, both parties need to have what the other wants.

What are 3 reasons why bartering did not work : The problems associated with the barter system are inability to make deferred payments, lack of common measure value, difficulty in storage of goods, lack of double coincidence of wants. You can read about the Monetary System – Types of Monetary System (Commodity, Commodity-Based, Fiat Money) in the given link.