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WAEC Economics 2012 Question 37

Question 37

Money and Inflation

Mr. Okpoti has meat and wants maize, while Mr. Adama has maize and wants meat. A transaction is possible because of

  1. A.joint demand.
  2. B.scale of preference.
  3. C.double coincidence of wants.
  4. D.opportunity cost.
Show the answer and explanation

Answer: C (double coincidence of wants.)

Explanation

Each has what the other wants, so there is a double coincidence of wants and barter can take place.