Explore BrainMass

Explore BrainMass

    Barter Economy

    A barter economy is an economy that exchanges goods or services for other goods or services, without the use of currency. It is an economy that is based solely on trade. Value is then in the form of what one has to exchange and what one wants to obtain from a trade. Barter economies were used before money was invented but resurfaced when the monetary unit was not seen as valuable. It was only when an economy was entirely self-sufficient that barter economies were completely implemented. 

    Although almost all economies have evolved from using bartering systems to using fiat money, the trading that takes place in present day is a reflection of the barter economy. In barter economies, economic activity does not have any government regulation. For a trade to be completed, both participants must be satisfied with the exchange, which can be seen as a limitation. Another limitation of bartering systems is that there is no equal measure of value, like there is in money. Since there is not a common measure of value, delayed payments could present conflict.

    On the other hand, bartering can also result in an individual being especially skilled in making a particular good and therefore specializing in that good. This could make people less dependent on the job market and therefore decrease the likelihood for inflation. The barter economy is especially unique from the other systems because it does not use money as a value and functions in a mostly unregulated economy.

    © BrainMass Inc. brainmass.com March 18, 2024, 6:06 pm ad1c9bdddf

    BrainMass Solutions Available for Instant Download

    Discussing Economics

    Need a understanding with this assignment in Economics. Need a explanation on each statement true or false and why. 1. Governments have sometimes forgotten about elasticity when they formulate tax policy. A few years ago the city fathers in Washington DC wanted to increase revenues so they increased the gas tax by ten cents a

    How a Disaster Affects the Production Possibilities Frontier

    Please help with the following problem. How does the existence of money reduce the costs of making transactions, relative to a society based entirely on barter? English is becoming the usual language for international transactions, even if the language of neither country is English. How does this reduce the cost of transac

    1-2 pages with references

    The bank is creating a new Internet banking strategy to entice new customers to sign up. Your manager has asked you to contribute to this strategy by describing how money works. In an e-mail to your manager, explain three functions of money in the economy. Then, describe what happens to the velocity of money when electronic form

    Economic Relations

    Let's suppose an economy in which there is no widely-agreed-upon form of money. In other words, assume we are dealing with a barter economy. Would economic relationships no longer apply in such an economy? Yes or no please Explain.

    General Economics

    In recent years, the federal tax that generated the largest percentage of federal tax revenues has been the corporate income tax. social security tax. personal income tax. sales tax Which of the following is a correct l

    Money & The Federal Reserve

    Suppose a new law stated that any person could print their own money. Consider this and answer the following: What kind of changes would come about in daily commercial transactions as a result of such a law? What forms could this private money assume? What would influence an individual to either accept or reject private m