Macroeconomics: Principles, Problems, & Policies 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0-07766-077-3
ISBN 13: 978-0-07766-077-2

Chapter 2 - The Market System and the Circular Flow - Discussion Questions - Page 49: 5

Answer

Before the days of money, people would commonly barter in order to exchange goods. (Bartering refers to directly trading one good for another good.) However, money has multiple advantages. First of all, it is divisible, for I can pay half a dollar for an apple, but it does not make sense to pay half a chair. In addition, money helps compare the price of different goods more easily.

Work Step by Step

see answer
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.