And how does the governance of money, by an appointed or elected body, help aid in the benefits, and smooth workability of a monetary system, over a bartering system?
2006-11-02 05:26:22 · 6 answers · asked by For sure 4 in Social Science ➔ Economics
A monetary system is more efficient. It is accepted by all merchants. (Legal Tender.) Bartering involves two people trading what each other wants. It is much tougher to match these wants. By paying money, we can all get what we want right away, if we have enough.
2006-11-02 05:30:49 · answer #1 · answered by Damien C 3 · 2⤊ 0⤋
A bartering system would be hard to monitor. For instance, if you did some work on a guy's house, like painted the whole exterior of the house. You did a splendid job because you are an A-1 painter. In exchange, he puts in a new floor for you. Well the floor that he for you is good. The time he put in is equal to the time you put in. Material costs were similar. But your quality of work is so much better than his. Then what?
2006-11-02 05:30:45 · answer #2 · answered by momofmodi 4 · 0⤊ 0⤋
Barter takes 2 or 3 people each having something one of the others needs and at the right quantity.
Money makes that kind of juggling unnecessary.
It also establishes baselines for the value of different things, and not wondering how many chickens for a goat, how many goats for a stereo, or similar.
2006-11-02 05:30:04 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You have 5 cars to trade, I have 10 million candy to trade. You would like to buy one candy. What do we do? Bartering becomes difficult that way. Or say you have 10 million ears of corn to trade. You have to trade it now when it is ripe. But you would need my trade value all year round. Money lets you store value and is easily divisible.
In that second example, a governance of money helps keep a solid viable steady value within the money. The value isn't constant, some inflation is expected, but you want it steady so people have faith in using money.
2006-11-02 05:35:21 · answer #4 · answered by JuanB 7 · 2⤊ 0⤋
Just how long would it take you to find someone who had just what you needed, and needed just what you have ?
Let's say you have a pair of shoes size 11EE and you're badly in need of a new blade for your lawn mower. How long woild it take you to find the guy with a new blade that needed those shoes ?
Money is the only thing that is accepted by everybody. Our work, our possessions, everything can be turned into money, which is accepted for our exact needs.
2006-11-02 05:42:58 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Perfect metaphor of the barter system. How about I will kiss yours, if you kiss mine, as my example.
2016-05-23 17:58:48 · answer #6 · answered by Anonymous · 0⤊ 0⤋