Question

(Economics) What is the difference between barter and currency systems?

A. One is used only in developing nations; the other is used only in industrialized nations.
B. One is used to obtain raw materials; the other is used to obtain manufactures materials.
C. In one, there is a direct exchange of goods and services; in the other, there is an exchange of money.
D. One is used to obtain services; the other is used to obtain goods.

Answer 1

Uh we use a currency system, so everything you buy has a set price

A water bottle would be $1
A rolex would be 2,000

In a barter system, mostly used in developing countries, you can trade items you think is of equal worth

"I'll give you 2 pieces of cloth for this"

Prices are not defined but rather agreed on by the customer

Answer 2

Uh, fact checking this

This is actually not used too much, so it doesn't really apply to most developing countries

Answer 3

Well I think its C but I don't know a lot about economics so I might be wrong ;-;

Answer 4

A barter or a traditional market involves exchange of sector 1-3 economic activities. There is no currency system.
A is wrong because to some extent, governments have minor barter systems. An example would be indian reserves in the US, where barter systems still exist
B is wrong as extraction of raw materials is only a sector 1 activity
C is correct, well done
D is wrong, barter is for sector 1-3, and market economies include all sectors