Money is a positive thing for a society to have, since it provides citizens with a medium of exchange that they can use to pay for needed goods and services. Bartering was common before money became widely used, but it has limitations that make it much more inflexible than money.Know More
Someone wishing to barter has to first find a person who has the item or service that he or she wants, and this person must also be willing to conduct a trade. In addition to logistical issues, bartering does not allow citizens to store money for future necessities.
Money may be stored or invested until it is required, allowing people to build their wealth. It also permits individuals to purchase things of all values. With bartering, the exchange is generally for an even value.Learn more about Economics
The quantity of a particular good supplied in a market increases as price goes up because suppliers have an increased interest in producing goods to generate higher amounts of revenue. This is a basic principle of the law of supply and demand.Full Answer >
A barter system is an old system which involves exchanging goods and services for other goods and services. This system works effectively in situations where there is no a common measure of value to be used in trade.Full Answer >
The primary advantage of imposing quotas on imported goods is protecting new industries from foreign competitors. The main disadvantage of erecting quotas on imports is its limitation on innovation and progress.Full Answer >
Advantages of a traditional economy include knowing people's role in the economy and producing goods to help people survive; disadvantages include a lower standard of living and an increased vulnerability of all concerned. A traditional economy is one that emphasizes the beliefs and customs of each generation of people.Full Answer >