Asked by Mckenna Grimm on May 26, 2024
Verified
Joshua and Ryzard buy the same pair of flip flops, but each in the wrong size. Joshua proposes a size swap with Ryzard. This is an example of
A) barter, since the flip flops in the correct size represent a medium of exchange.
B) barter, since the flip flops in the correct size have intrinsic value to both Joshua and Ryzard.
C) money, since the flip flops in the correct size do not have any intrinsic value.
D) money, since the flip flops in the correct size represent a medium of exchange.
Medium Of Exchange
A function of money that allows it to be used as an intermediary in trade, facilitating the sale, purchase, or trade of goods between parties.
- Gather insights into the fundamental aspects of money and its critical role in the economic sector.
Verified Answer
JA
Janessa AdamsMay 28, 2024
Final Answer :
B
Explanation :
Barter involves trading goods or services directly without the use of money. In this case, Joshua and Ryzard are exchanging flip flops directly to get the correct sizes, which have intrinsic value to them because they fit. This makes it a barter transaction, not a monetary one.
Learning Objectives
- Gather insights into the fundamental aspects of money and its critical role in the economic sector.