Question 6
MoneyThe problem of double coincidence of wants is that
- A.it is hard to determine the exchange rate for goods.
- B.it does not encourage purchase of large quantities and varieties.
- C.deferred payment is not possible because goods exchanged are not durable.
- D.one has to find someone who wants his surplus and also has what he needs.
Show the answer and explanation
Answer: D (one has to find someone who wants his surplus and also has what he needs.)
Explanation
Under barter, a trader must find a person who both wants what he has and has what he wants.