The coincidence of wants problem associated with barter refers to the fact that:A) for exchange to occur,each seller must have a product that some buyer wants.B) money must be used as a medium of exchange or trade will never occur.C) specialization is restricted by the size or scope of a market.D) buyers in resource markets and sellers in product markets can never engage in exchange.

Question

The coincidence of wants problem associated with barter refers to the fact that:A)  for exchange to occur,each seller must have a product that some buyer wants.B)  money must be used as a medium of exchange or trade will never occur.C)  specialization is restricted by the size or scope of a market.D)  buyers in resource markets and sellers in product markets can never engage in exchange.

ANKUR KUMAR SRIVASTAVA · Accepted Answer

Final Answer : A, Explanation :  In a barter system, exchange can only occur if each party has a product or service that the other party wants. This leads to the coincidence of wants problem, as it is difficult to find someone who has what you want and wants what you have. Money serves as a solution to this problem by providing a universally accepted medium of exchange.

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